The merger of commercial companies, from a legal standpoint, is one of the means used to achieve expansion and economic growth in local or global markets. It is a mechanism sought by many companies to create a new economic entity in a legal manner. It is a legal process under which two or more companies are merged to create a new entity, resulting in the combination of their assets, rights, obligations, and liabilities into the new company. The merger also aims to enhance competitive strength, achieve economic efficiency, and reduce operating costs. However, it carries with it legal challenges that require regulation and scrutiny of every step taken, with due regard to the rights of the concerned parties, the consent of the partners in the companies involved in the merger, and achieving balance between the interests of the companies and the economic community. • The benefits sought by companies through mergers lie in their desire to expand the scope of work and increase market share, improve operational efficiency and reduce costs, increase competitiveness, diversify services, expand the customer base, and work on building a strong brand that gains the attention of all clients and establishes trust in that brand. It is considered an essential economic pillar among companies and a stage for the expansion of corporate activities and the unification of the capital of the merged companies, thereby enhancing the economic position of the new entity resulting from the merger. • Companies of all types may merge, whether limited liability, partnership, single-person, or joint-stock companies, since after the completion of the merger processes, their legal form may be changed into the new structure consistent with the provisions of the law and the agreement of the partners. • As for the nationality of the company, foreign companies may merge with existing national companies and establish a new national company, provided that the foreign company carries out its main activity in the host country. This aims to reduce the control of foreign companies over the national economy. Consequently, shareholders’ obligations to comply with the law increase. • According to Article 255 of the Companies Law No. 1 of 2016, any company, even if under liquidation, may merge into another company. This provides flexibility to adapt to economic changes and restructure companies, thereby strengthening their financial position and increasing trust in dealing with them. • The methods of merger naturally differ depending on the economic circumstances of the companies and the objectives they seek to achieve through the merger. Since mergers are conducted for purely economic purposes and have important legal implications, the form of merger depends on the intended objective. The merger may take one of the following forms: 1. Merger by absorption, which occurs through the dissolution of one or more companies and the transfer of their assets and liabilities to an existing company. 2. Merger by consolidation, which occurs through the dissolution of two or more companies and the establishment of a new company to which the financial positions of the merged companies are transferred. 3. Merger by division and absorption, which occurs through dividing the financial position of a company into two or more parts, each of which is transferred to an existing company. 4. The Executive Regulations of the Companies Law regulate the procedures, conditions, and requirements of merger, in accordance with the applicable provisions. • Merger Procedures Article (135) of the Executive Regulations of the Companies Law No. 1 of 2016 sets out the merger procedures, which include: 1. Submission of the merger application: Companies must submit a merger application to the Ministry of Commerce and Industry using the prescribed form, attaching all required documents such as the draft merger contract and details of the concerned companies. 2. Review of the application: The Ministry reviews the application and may request amendments or additional information to the draft merger contract to ensure compliance with all legal requirements. 3. Extraordinary General Assembly procedures: After obtaining the Ministry’s preliminary approval, the companies must convene an extraordinary general assembly to approve the merger process. This must take place within 30 days from the date of notification of the approval. 4. Publication of the decision: The merger decision becomes effective after 30 days from its publication in the Commercial Register and designated publication platforms, allowing creditors and beneficiaries sufficient time to object if they wish. 5. Registration in the Commercial Register: The merger must be recorded in the Commercial Register of the company according to the new legal structure, ensuring the official records are updated to reflect the new entity in the commercial registers. • Although the merger provides many benefits, there are common legal challenges associated with merger operations due to the diversity of local and international laws, which makes compliance with multiple and different legal systems difficult, as well as the challenge of handling financial obligations and accurately valuing assets. • When carrying out merger operations, legal considerations must be observed to ensure that the process proceeds lawfully and smoothly while avoiding legal risks. Therefore, it is essential to seek advice from experienced legal consultants to overcome these complexities and ensure that the merger is structured and completed lawfully and correctly implemented. • Therefore, Dar Almuhama Law Firm, recognizing the importance of merger operations between companies, has established a specialized department dedicated to mergers. This department comprises a select group of specialized and experienced consultants to ensure that the process is carried out in a sound legal manner in accordance with the law.