First published in Global Competition Review's "Getting The Deal Through - Mergers & Acquisitions 2005",
www.GettingTheDealThrough.com
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What form do business combinations take?
In Indonesia, business combinations may take a number of different forms, including mergers, consolidations and acquisitions.
Law No.1 of 1995 Regarding Limited Liability Companies (7 March 1995) (the Company Law) introduced the concepts of merger, consolidation and acquisition for business combinations. Previously, mergers, consolidations and acquisitions of companies were made based on contractual arrangements under the Indonesian civil and commercial codes (which are derived from Dutch law). An implementing regulation for the Company Law, namely Government Regulation No.27 of 1998 Regarding Mergers, Consolidations and Acquisitions (24 February 1998) (GR No.27), defines a merger as "a legal action undertaken by one or more companies to merge with another existing company, with the merging company
