BAHRAIN Law and Practice Contributed by: David Walker, Simone Del Nevo, Sherif Saadeldin and Rahul Sud, ASAR - Al Ruwayeh & Partners
ASAR – Al Ruwayeh & Partners United Tower, 32nd Floor Building No. 316, Road 4609 Manama Sea Front 346
Kingdom of Bahrain Tel: +973 17 533 182 Email: asarbh@asarlegal.com Web: www.asarlegal.com
1. Trends 1.1 M&A Market
Public M&A transactions have generally reflected port - folio optimisation and strategic divestments aligned with Bahrain Economic Vision 2030, with proceeds potentially redeployed into infrastructure and develop - ment initiatives supporting economic diversification. 1.3 Key Industries Banking and financial services remain active sectors, alongside real estate and energy. Healthcare and technology have also continued to attract investor interest, particularly in areas linked to digital transfor - mation and service expansion. 2. Overview of Regulatory Field 2.1 Acquiring a Company There are two principal ways to effect a takeover of a Bahraini public company: • a friendly or hostile contractual takeover offer by the bidder for the shares of the target; or • a merger of the target by consolidation or absorp - tion into the bidder or a subsidiary or associate of the bidder. A business can also be purchased by way of an asset purchase, commonly known as a business premises transfer. Bahrain’s Commercial Companies Law allows for two main types of merger: • a merger by absorption, whereby one or more companies (merged company) dissolve and
Bahrain’s M&A activity continues to be driven pre - dominantly by private transactions, with public M&A remaining selective and strategic. Cross-border trans - actions account for a significant portion of deal flow, particularly involving GCC-based investors and mul - tinational groups with an established presence in the Kingdom. The Minimum Domestic Top-Up Tax, effective from 1 January 2025, now forms part of the tax framework applicable to qualifying multinational enterprises. While it has not materially curtailed deal activity, it has added further tax analysis and structuring considera - tions to cross-border transactions. 1.2 Key Trends Global market conditions continue to influence deal activity in Bahrain. Ongoing sector consolidation and inflationary pressures in Europe and the United States have prompted multinational groups to reassess asset portfolios, resulting in acquisitions of subsidiaries and branches in Bahrain and a steady level of domestic M&A activity. Regional sovereign wealth funds and large corporate groups remain active, with a focus on acquiring strate - gic stakes in established Bahraini businesses, particu - larly within the industrial, energy and services sectors. Transactions are typically long-term and strategic, tar - geting stable assets with identifiable growth potential.
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