Document background
The Company Acquisition Agreement is a fundamental transaction document used in mergers and acquisitions in the United Arab Emirates. It is essential when one company intends to acquire another through either a share purchase or asset purchase mechanism. The agreement must comply with UAE Federal Commercial Companies Law and other relevant regulations, including foreign ownership restrictions and specific free zone requirements where applicable. The document typically includes detailed provisions covering purchase price mechanisms, warranties, indemnities, conditions precedent, and completion requirements. It's particularly important to address UAE-specific elements such as local sponsorship requirements (if applicable), economic substance regulations, and necessary governmental approvals. The agreement serves as the primary transaction document and forms the basis for all ancillary documentation required to effect the transfer of ownership under UAE law.
