Mergers & Acquisitions Comparative Guide

1 Deal structure

1.1 How are private and public M&A transactions typically structured in your jurisdiction?

Private M&A transactions: Most private M&A transactions in Saudi Arabia are structured as share purchase deals. Through a share purchase agreement, the share capital of the target is acquired by the buyer from the seller for an agreed consideration.

A joint venture between two or more corporate entities through a contractual arrangement is also a common structure of private acquisition transactions.

Private M&A transactions may be also structured as asset purchase deals. Through an asset purchase agreement, all or certain assets and liabilities of the target are acquired by the buyer from the seller. For example, a buyer may acquire a specific factory owned by the seller.