Mergers and Acquisition in Norway
Mergers and Acquisitions in NorwayUpdated on Friday 08th June 2018
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Mergers and Acquisitions in Norway involve the transfer of ownership of one company to another or that their ownership is combined. This is a business strategy of corporations in order for them to grow, improve, or expand their business enterprise. For merger, two or more companies combine to form one new business entity, while in acquisition, one company acquires the ownership of the other. Mergers and acquisitions in Norway are mainly regulated by the Private Limited Liabilities Company Act, the Public Limited Liabilities Company Act, and the Partnership Act. There are also various methods of merging or acquiring companies. Our lawyers in Norway can help you comply with these laws if you want to purchase or to merge with a Norwegian company.
Purchase of Shares
This method is also called stakebuilding. This is done by purchasing the shares of a company that is publicly listed. By acquiring shares, you will gain leverage and you will be able to subsequently bid for the purchase of the remaining outside shares then gain ownership. Our Norwegian lawyers can help you on the process of acquisition of shares.
The following video offers a short presentation on the merger and acquisition procedures applicable in Norway:
For this method, the acquiring company makes a voluntary offer to gain ownership over another company. This is the most common method of acquisition in Norway. The Norwegian law gives ample flexibility when it comes to making a voluntary offer. Thus, the parties have the freedom to discuss the terms and conditions of the transaction. Our attorneys in Norway can help draft a proper offer for you, prepare the necessary documents, and conclude the acquisition of ownership over the other company.
This method occurs when a company directly or indirectly acquires more than one-third of the voting rights of a company that is publicly listed in a Norwegian market. Such company is mandated by Norwegian law to make an offer to purchase the outstanding shares that remain. Upon reaching the ownership threshold, the bidder must inform the company to be acquired and the Oslo Stock Exchange, a Norwegian regulated marketplace. Our law firm in Norway can guide you in making a mandatory offer.
This method is available to limited liability companies in Norway. The merger is initiated by a resolution adopted by the company and approved by two-thirds vote of the shares of the company. The company that acquires the other is called the surviving company, while the company acquired is known as the surrendering company. The rights, obligations, and assets of the surrendering company are acquired by the surviving company. The lawyers at our Norwegian law firm are very familiar with this merger process.
For more information on the process of purchasing a local company or merging with a Norwegian company, just contact our law firm in Norway. Our lawyers are more than capable of effecting the transaction.