PHOTO
- Deal is first cross-border merger using DIFC’s Companies Law
Dubai, UAE: Dubai International Financial Centre (DIFC), the leading global financial centre and the top innovation hub in the Middle East, Africa and South Asia (MEASA) region, welcomes the completion of the first cross-border merger using DIFC’s Companies Law.
The transaction uses a highly complex ‘reverse triangular merger’ structure, seeing United Arab Chemical Carriers Limited (UACC) join forces with United Overseas Group Limited (UOG) with the backing of a newly formed investor consortium. The enlarged group will continue to be known as United Arab Chemical Carriers Limited.
It is the first time the merger provisions under the DIFC Companies Law have been used for a merger of this nature and paves the way for its increased use. The DIFC Companies Law was updated in 2018 and included a rewrite of the merger requirements in the Centre. DIFC’s merger provisions are less detailed and more user-friendly than those under the UK regime. Most importantly, they enable both public and private companies established in DIFC to merge with other companies, including those established in jurisdictions outside the Centre.
Salmaan Jaffery, Chief Business Development Officer at DIFC Authority, said: “DIFC continues to build on its reputation as a global financial centre thanks to our world class user-friendly legal and regulatory framework. This is the first cross-border merger using DIFC’s Companies Law and we expect to see more in the future. We remain focused on delivering best-in-class support for businesses to ensure they have the opportunities to grow and scale within our community and across the region.”
Jacques Visser, Chief Legal Officer at DIFC Authority, commented: “We are pleased to see DIFC’s Companies Law being used in this novel manner to facilitate a complex cross-border merger. We would like to thank the newly formed United Arab Chemical Carriers Limited (UACC) for using DIFC for this transaction.
“DIFC prides itself on delivering best-in-class legal and regulatory structures, tailored for our region and that’s why we introduced the updated Companies Law. This merger sets a strong precedent for successful M&A in DIFC and demonstrates the benefits of the unique legal framework which DIFC offers.”
© Press Release 2021
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
