CMA Approves Updated Version of Merger and Acquisition Regulations

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CMA Approves Updated Version of Merger and Acquisition Regulations

CMA Logo
CMA Logo

Saudi Capital Market Authority board issued its resolution to approve the updated "Merger and Acquisition Regulations" which will be effective and in full force as of Thursday.

The updated lists aim to regulate the mergers and acquisitions and make the capital market environment more stable and in accordance with the national transformation program and Vision 2030.

The purpose of these regulations is to regulate acquisitions activities, based on the Authority’s powers as stated in the Capital Market Law and merger activities, based on the Authority’s powers.

In light of that, the list included a number of clarifications about the entities that apply to the regulations including: any person who deals in the exchange, including (without limitation) issuers, shareholders, authorized persons, and any person involved directly or indirectly in participating or giving an advice on any transaction amended by these Regulations, directors of companies which are subject to these Regulations, and any person who seeks the acquisition of, or increase shares in, any company subject to this regulation.

The list also included a regulation concerning deals to sell, dispose of or acquire, or agree to sell, assets of a value equal to 10% of the net asset of the Offeree Company according to the latest reviewed interim financial statements or audited annual financial statements, whichever is later, whether through a transaction or various transactions, buy-back of offeree company’s shares, or enter into contracts otherwise than in the ordinary course of business.

Regarding market safety and protection of contributors, the updated version apply to any person, individually or acting in concert with the others, and thus becomes the owner of 40% of the shares carrying voting rights in the offeree company.

Any person obtaining shares, or have control over them, by a deal or number of deals, in owned or controlled shares, or which is controlled by persons acting in concert with it, that represent 40% or more of a specific class of shares that carry voting rights, may not have control over its shares during the following 6 months of obtaining such percentage without the Authority's approval and in accordance with the conditions it specifies

Any person obtaining shares by a deal or number of deals that represent 40% or more of shares that carry voting rights of a listed company, shall disclose to the public the following information: the ownership details of such person and persons acting in concert with it, before and after the transaction, purchase method and the price for share, parties of the purchase, purpose of such purchase and the future plans for the offeree company's activity, shareholders and employees resulting from the purchase.



Gold Steadies with Focus on US-China Talks, Fed Meeting

A saleswoman shows gold bangles to a customer at a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Kolkata, India, May 3, 2022. REUTERS/Rupak De Chowdhuri/File Photo
A saleswoman shows gold bangles to a customer at a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Kolkata, India, May 3, 2022. REUTERS/Rupak De Chowdhuri/File Photo
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Gold Steadies with Focus on US-China Talks, Fed Meeting

A saleswoman shows gold bangles to a customer at a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Kolkata, India, May 3, 2022. REUTERS/Rupak De Chowdhuri/File Photo
A saleswoman shows gold bangles to a customer at a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Kolkata, India, May 3, 2022. REUTERS/Rupak De Chowdhuri/File Photo

Gold prices held nearly steady on Tuesday as markets turned their focus to upcoming US-China talks and the Federal Reserve's policy decision.

Spot gold steadied at $3,313.63 per ounce, by 10:05 ET (14:04 GMT). Prices hit their lowest point since July 9 on Monday after a trade deal between the United States and European Union dampened safe haven demand for the yellow metal.

US gold futures was unchanged at $3,311.60.

"The lack of clear details and a defined outline of the announced trade deals... continues to keep market participants on edge," said Zain Vawda, analyst at MarketPulse by OANDA, Reuters reported.

Vawda added that a break below $3,300 could trigger a decline toward the $3,000 level in the medium term.

US and Chinese officials held more than five hours of talks in Stockholm on Monday aimed at extending their trade truce by three months, with discussions set to resume Tuesday.

Analysts note that recent US deals with the EU and Japan offered some relief, but talks with China remain far more complex and prolonged.

On the US interest rate front, the US central bank's two-day policy meeting kicks off later in the day, with rates widely expected to remain unchanged. Investors will closely scrutinize the Fed's commentary for any signals on the timing and pace of potential rate cuts ahead.

Markets are currently pricing in just under 50 basis points of rate cuts by year-end, with October seen as the most likely starting point, said Peter Grant, vice president and senior metals strategist at Zaner Metals.

However, dissent from two Fed members could shift expectations toward a September cut, which could potentially boosting gold, he added.

Gold tends to benefit in a low interest rate environment as the reduced yield on competing assets makes the non-yielding metal more attractive to investors.

Spot silver fell 0.5% to $37.98 per ounce, while platinum was steady at $1,389.85 and palladium slipped 1.2% to $1,232.67.