Acquisition of Shareholding Companies between Dependency and Independency - A study in Light of Federal Companies’ Law for The United

Abstract

Public shareholding companies follow the method of acquisition to implement the strategy of expansion outside the company in order to form large economic blocs. By means of which, they dominate the management of the acquired company and control the decisions and voting in such a way that makes the latter company, to a large extent, dependent to the management of the acquired company that owns      a significant part of its shares, making it as a hostage so that its independence would disappear under the financial and administrative control of the acquisition of a company. Companies seeking to devise solutions to invest their financial resources and surplus capacity are exposed to another joint stock company that wants to buy part or most of its shares and contain its management almost completely As the acquisition takes place between two companies of varying size and potential, the acquirer is able to convince the shareholders of the target company to acquire for the sale of the shares at attractive prices often, which enables the company to acquire the financial advantages of expanding and diversifying the profit and control areas on the target company to acquire and control the management and subordination thereto.