Mergers & Acquisitions

Mergers and acquisitions are often referred to together. This area also covers transactionssuch as share transfers and demergers. Demergers can be referred to as the opposite of amerger.

The driving force of mergers and acquisitions is the business structure and theplanning of the business & commercial activities. The legal aspect of these transactions is justas comprehensive and important as the business aspect.

Mergers and acquisitions require amultidisciplinary approach.While tax laws incentivise, competition laws limit these transactions. Companies resort tothis way especially to grow more easily. Sectoral motivations also heavily influence thedecision to engage in mergers and acquisitions.

Mergers and acquisitions

For example, these transactions are oftenseen in telecommunication companies worldwide. In this case, one of the reasons for this isto utilise the base station of another company. On the other hand, these transactions arealso made to take over the network of branches in the supermarket sector.

This is done tobenefit from the established store networks.In the energy market, since transferring a mining licence is impossible, the company is takenover, which results in taking over the licence. There is a secondary regulation on thetakeover of hospitals.

Personnel staff is regulated by special legislation. An establishedhospital is purchased since meeting these requirements from scratch would take longer. Tax exemption is also an important motive in these mergers and acquisitions.

While taxapplies when purchasing something, there is no tax here. Although recently, some new taxpractices have been introduced. New regulations are expected to come into effect in thenear future.