LEGAL AND REGULATORY FRAMEWORK OF MERGERS AND ACQUISITIONS IN NIGERIA

Introduction

Before we delve into the roles played by Law and Regulatory agencies in Mergers and Acquisitions, it is important to simplify the meaning of this concept. Mergers and acquisitions (M&A) are a general term that describes the consolidation of companies or assets through various types of financial transactions.  A merger is an agreement that unites two existing companies into one new company. A merger is the voluntary fusion of two companies on broadly equal terms into one new legal entity. The firms that agree to merge are roughly equal in terms of size, customers, and scale of operations. Acquisition on the other hand is when one company purchases most or all another company's shares to gain control of that company. Purchasing more than 50% of a target firm's stock and other assets allow the acquirer to make decisions about the newly acquired assets without the approval of the company’s other shareholders. Acquisitions, which are very common in business, may occur with the target company's approval, or despite its disapproval.

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