Publication date: 07.06.2024
Peculiarities of corporate law in Ukraine: mergers and acquisitions
Introduction
Mergers and acquisitions (M&A) are important aspects of corporate law that play a significant role in the development of business and the economy of Ukraine. These processes allow companies to expand their market, increase their capitalization and enhance their competitiveness. In this article, we will analyze the main features of mergers and acquisitions in the context of Ukrainian corporate law.
Legislative regulation
Mergers and acquisitions in Ukraine are regulated by several key legal acts, including:
- The Civil Code of Ukraine: Defines general principles of transactions, including mergers and acquisitions.
- The Commercial Code of Ukraine: Regulates business activities, including reorganization of enterprises.
- The Law of Ukraine "On Joint Stock Companies": Establishes rules for reorganization of joint stock companies.
- Antimonopoly legislation: Controls the concentration of business entities to prevent market monopolization.
Mergers and acquisitions procedure
Preparatory stage: At this stage, market analysis, valuation of companies, and determination of a merger or acquisition strategy are carried out. Due diligence is conducted to assess the financial condition and legal risks.
Conclusion of the transaction: After the analysis, the parties enter into a merger or acquisition agreement that sets out the main terms of the transaction, including the price, payment method and obligations of the parties.
Obtaining approvals: Mergers and acquisitions may require regulatory approvals, including from the Antimonopoly Committee of Ukraine.
Registration of changes: After the transaction is concluded, it is necessary to register the changes in the relevant registers, which confirms the completion of the merger or acquisition process.
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Challenges and issues
Regulatory barriers: The process of obtaining regulatory approvals can be lengthy and complicated, which may delay the completion of a transaction.
Financial risks: Valuation of companies can be difficult due to the unstable economic situation, which can lead to financial risks.
Integration challenges: After the transaction is completed, companies may face integration challenges, which may affect their performance.
Benefits of mergers and acquisitions
Market expansion: Mergers and acquisitions allow companies to expand their market and increase market share.
Increased efficiency: Pooling resources and optimizing processes can lead to increased efficiency.
Increase in capitalization: Mergers and acquisitions can help to increase the capitalization of companies and increase their investment attractiveness.
Conclusion.
Mergers and acquisitions are important tools for business development in Ukraine. They allow companies to expand their market, improve efficiency and increase capitalization. However, these processes must take into account regulatory requirements, financial risks, and integration challenges to be successful.
