CMA Approves Updated Version of Merger and Acquisition Regulations

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CMA Logo
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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.



Saudi Arabia Establishes Non-Profit Association of Medical Device Manufacturers

The headquarters of the Ministry of Industry and Mineral Resources (SPA)
The headquarters of the Ministry of Industry and Mineral Resources (SPA)
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Saudi Arabia Establishes Non-Profit Association of Medical Device Manufacturers

The headquarters of the Ministry of Industry and Mineral Resources (SPA)
The headquarters of the Ministry of Industry and Mineral Resources (SPA)

Saudi Arabia’s Ministry of Industry and Mineral Resources announced on Tuesday the establishment of the Non-Profit Association of Medical Device Manufacturers, aimed at supporting the development and growth of the medical device industry.

The initiative aligns with the Ministry’s efforts to empower non-profit organizations in the industrial and mining sectors, reflecting its belief in their role in advancing the Kingdom’s economic and social development.

According to a Ministry statement, the Association seeks to encourage high-quality investments in medical device manufacturing, support factories’ compliance with the highest standards of quality and safety, raise awareness about locally produced devices and their advantages, and enhance the export efficiency of Saudi medical products.

The Association will also provide specialized advisory services, foster innovation, and help develop the skills of the workforce in the sector to strengthen its regional and global competitiveness.

The establishment of the Non-Profit Association of Medical Device Manufacturers forms part of the Ministry’s broader efforts to enable the non-profit sector and enhance its role in industry and mining. The initiative aims to increase its contribution and direct impact on the Kingdom’s GDP, in line with the goals of Saudi Vision 2030.