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The Saudi market has experienced rapid development, making mergers and acquisitions (M&A) transactions a key tool for achieving growth and strategic integration. These transactions require seasoned legal support, particularly with the increasing interest of local and international companies in expanding in the KSA.
Sadany & Partners Law Firm in Riyadh provides advanced legal advice for the efficient management of M&A. It also handles the finer regulatory and commercial details to ensure that interests are protected and the objectives of the transaction are achieved.
1. Why do you need M&A expert lawyers in Riyadh?
Riyadh is not just a location; it is the hub of commercial, regulatory, and investment activity in Saudi Arabia. In M&A transactions, we will cover the following:
- Coping with multiple regulatory regimes (corporate law, competition/antitrust, foreign investment, capital markets, labour and employment).
- Drafting bilingual documents (Arabic and English) that are enforceable under Saudi law and compliant with international standards.
- Post-transaction integration items (transfer of employment, licences/renewals, localisation, governance restructuring) that often determine the success of the transaction.
- Risk management: Hidden liabilities, regulatory penalties (e.g., under competition law), and reputational damage.
Companies that consistently lead the lists of M&A transactions in the KSA include Khushem & Partners, Abu Hamid & Co., Al Sheikh & Al Haqbani, Clifford Chance, and Baker McKenzie. For example, the Khushim website states the following:
This company is continuously ranked among the best in the field of M&A, including mergers, acquisitions, exit and spin-offs. It is also ranked by rating agencies in the KSA as first class in the field of M&A.
The data indicates the importance of choosing a company with an established reputation in Riyadh to complete high-value M&A.
2. How Sadany & Partners Law Firm provides professional legal support for complex transactions
Our approach is designed to support complex M&A transactions through to completion:
a. Structuring strategic transactions
We start by understanding your business objectives – whether it is an acquisition, merger, an exit, a joint venture or an asset purchase – and then advise you on the optimal structure under Saudi law. We take into account: Ownership limits under foreign investment rules, sectoral licences, taxes and zakat (if applicable), and control/exit mechanisms.
b. Legal audit
We conduct a comprehensive legal audit covering the following:
- Corporate governance, ownership, and licences of the target company.
- Core contracts, employment obligations, job localisation, and regulatory compliance.
- Competition and economic concentration risks are subject to the General Authority for Competition (GAC).
- Taxation, customs, intellectual property, real estate, and other sector-specific risks.
c. Authentication and negotiation
We draft and negotiate bilingual (Arabic/English) transaction documents, including:
- Share Purchase Agreement (SPA) or Asset Purchase Agreement (APA).
- Shareholders' agreements.
- Merger agreements (acquisition or consolidation)
- Clauses on non-competition, non-disclosure, guarantees, and remedies
All are formulated to be enforceable under Saudi law, with clear guarantees of your rights and obligations.
d. Regulatory Applications and Approvals
We handle all administrative procedures:
- Submitting foreign investment applications to the Saudi Ministry of Investment (MISA) in the event of foreign ownership.
- Obtaining the necessary approvals from the GAC if the transaction meets the requirements of 'economic concentration'.
- Submitting capital market applications to the Capital Market Authority (CMA) in the case of listed companies.
- Submitting registration and incorporation applications to the Ministry of Commerce and updating the commercial register.
e. Post-Transaction Integration and Compliance
We provide post-transaction assistance with labour law compliance, licence renewals, board/governance restructuring, and ongoing compliance monitoring. We ensure that the merged or acquired entity is not merely a paper entity, but is operationally ready and legally sound.
3. Example - A complex M&A transaction executed with precision
A prominent Saudi industrial group aimed to acquire a regional engineering company to expand into related services. The transaction involved a minority foreign shareholding, as well as significant licensing issues.
Our role consists of the following:
- Structuring the transaction as a share acquisition, taking into account foreign investment regulations.
- Conducting due diligence that revealed employment/contract obligations and sector licences requiring renewal.
- Drafting of a share purchase agreement and a bilingual contribution agreement that includes clauses on remedies and guarantees.
- Managing the submission of applications to the MISA and obtaining approval from the GAC within the specified time frame.
- Monitoring the transfer of labour and restructuring governance after completion of the transaction.
Outcome: The transaction was completed on time. Regulatory approvals were obtained. The integration process ran smoothly. The client's market reach expanded without any legal obstacles.
4. Why us?
- Local experience in Riyadh: We are licensed to provide legal advice under Saudi law and are fully familiar with the regulatory environment in Riyadh.
- Expert team in M&A: Expert team in M&A and complex commercial transactions.
- Proficiency in drafting documents in two languages: All documents are drafted in both Arabic and English to ensure their enforceability and clarity.
- Strong relationships with regulators: Effective coordination with the Ministry of Commerce (MOCI), the Ministry of Investment (MISA), the GAC, the CMA, and the Commercial Registry.
- Transparent business model: Realistic deliverables, organised timelines, milestone invoices, and predictable costs.
- Insightful business vision: Legal advice aligned with your business strategy, not just compliance.
5. Finding the Right Legal Advisor for M&A – A Checklist for Business Leaders
When selecting the right law firm in Riyadh for M&A transactions, consider the following:
- Is the firm highly ranked in M&A in the KSA (e.g., Tier 1 in IFLR 1000 or Band 1 in Chambers)?
- Has the firm executed transactions similar in size or complexity to yours?
- Is the team fluent in Arabic and English, and capable of drafting legally binding contracts?
- Does the firm manage regulatory files at the Ministry of Commerce (MOCI), the Ministry of Investment (MISA), the General Authority for Competition (GAC), and the Capital Market Authority (CMA)?
- Are prices transparent? Are you provided with clear details about costs and timelines?
- Does the firm align with your business objectives (growth, exit, consolidation) and not just compliance with legal requirements?
At Sadany & Partners Law Firm, we meet all these requirements and are fully prepared to cooperate with you on your next major business transaction.
6. Key trends in M&A activity in Riyadh (2025 forecast)
- Cross-border acquisitions: With the relaxation of foreign investment rules, the flow of deals into the KSA will increase.
- Privatisation and public-private partnerships: The flow of government-funded transactions, particularly in the infrastructure, utilities, and social sectors.
- Mergers of technology and financial technology companies: M&A in digital economy companies and platforms.
- Transformation in the energy sector: Mergers in the fields of renewable energy, hydrogen, and green hydrocarbon services.
- Merger of SMEs: Merger of small entities to compete in the broader Vision 2030 system.
An expert legal advisor can help you steer your transaction to take advantage of these trends while navigating the regulatory complicated formalities.
Conclusion – The value of a true legal advisor becomes apparent when transactions become complex and the stakes are high.
The choice of legal counsel is a decisive factor when the transaction is complex, high-impact, and strategically important. The advanced M&A environment in Riyadh requires a legal mind that combines vision, strategic insight, regulatory knowledge and execution capability. Sadany & Partners Law Firm brings its expertise to bear on complex transactions.
The Riyadh team accompanies companies through M&A, exit, market entry, and restructuring processes. We invite you to contact our Riyadh firm today to schedule a consultation with our M&A specialists and ensure the success of your next transaction. A successful transaction begins with careful consultation and ends with solid business confidence.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.