Mergers and Acquisitions Law exist in every country of the world. But, the laws and regulations regarding Mergers and Acquisitions differ from country to country. In US the Mergers and Acquisitions Law are different from that of Nigeria or Thailand. So, to get a real picture of the Mergers and Acquisitions Law, we have to discuss the Mergers and Acquisitions Law of different countries.
Mergers and Acquisitions Law in United States of America
In Unites States of America(USA), Mergers and Acquisitions Law have been generated keeping in mind the interests of the shareholders. To protect the shareholders, US govt. constituted the law that, a merger deal can be finalized only through the process of voting by the Board of directors and voting by the shareholders of the two separate companies.
In USA, there are both state laws and federal laws to administer Mergers and Acquisitions.
State Laws of USA regarding Mergers and Acquisitions
The State Laws determine the process through which any merger or acquisition can be approved in the country. These laws also ensure that, the shareholders of the target firm receive fair value for their shares. In USA, State laws has also been generated keeping in mind the issue of Hostile Takeover. These laws protect any target company from Hostile Takeover by providing financial and legal support.
Federal Laws of USA regarding Mergers and Acquisitions
The Federal Laws keeps a check on the size of the joint firm after a Merger or Acquisition, so that the merged firm cannot develop monopolistic power. The Federal Laws of USA ensures that, no big merged firm involves in any business activity which is unlawful.
Just like USA, all the other countries have their own laws and regulations regrading Mergers and Acquisitions. In Nigeria, for approval of any Merger or Acquisition deal, a majority agreement is required to be produced before court. The court sanctions the deal by issuing order. On the contrary, in Thailand, there are no fixed laws and regulations regarding Mergers and Acquisitions. The companies are free to set their own terms and conditions in case of any merger or acquisition.