Mergers & Acquisitions (M&A) in Palestine: Legal and Investor Guide

Palestine, as one of the high-potential investment regions in the Middle East, offers opportunities in sectors such as technology, agriculture, energy, and services. Mergers and acquisitions (M&A), a critical tool for company growth and market expansion, are significant for both local and international investors in Palestine.

To ensure these processes are conducted legally and securely, guidance from an experienced legal advisor is essential. Cosmos Legal Law Office provides professional and strategic support to investors throughout M&A transactions in Palestine.

1. Legal Framework

M&A transactions in Palestine are governed by:

• Palestinian Companies Law (Companies Law No. 1 of 1929 and amendments)

• Foreign Investors Law and Incentive Regulations

• Competition and Anti-Trust Regulations

• Sectoral regulations (banking, telecommunications, energy, etc.)

2. Types of Mergers & Acquisitions

• Merger: Two or more companies combine under a single legal entity.

• Acquisition: One company acquires shares or assets of another to gain control.

• Partial Acquisition: Only specific business units or assets are acquired.

3. How the Process Works

1. Due Diligence

The target company’s financial status, contracts, liabilities, licenses, and ongoing litigation are reviewed.
Cosmos Legal provides comprehensive legal reports to identify risks in advance.

2. Contract and Agreement Preparation

Share transfer agreements, merger protocols, and partnership agreements are drafted.
Cosmos Legal ensures contracts comply with Palestinian law and protect the parties’ rights.

3. Official Approvals

• The company’s general assembly approves the merger/acquisition.

• Approval is obtained from the Ministry of Commerce and Industry or other relevant authorities.

• The Competition Authority may review the transaction to prevent anti-competitive practices.

4. Registration and Closing

• The transaction is registered in the official commercial registry.

• The new partnership structure and management bodies are officially recorded.

4. Key Considerations for Foreign Investors

• Ownership and Shareholding Restrictions: Foreign ownership may be limited in certain sectors.

• Tax Regulations: Corporate tax, VAT, and withholding obligations must be reassessed post-acquisition.

• Investment Incentives: Strategic sectors may receive incentives from the Palestinian Investment Agency.

• Regional Risks: M&A in Palestine involves regional and political risk factors that must be considered.

5. Role of Cosmos Legal

Cosmos Legal Law Office provides investors with comprehensive support during M&A transactions in Palestine, including:

• Legal due diligence and risk analysis

• Drafting share transfer and merger agreements

• Handling approvals from ministries and regulatory authorities

• Tax planning and guidance on investment incentives

• Negotiation and agreement management between parties

Conclusion

With its strategic location and investment opportunities, Palestine is an important market for mergers and acquisitions. However, these processes require expertise in corporate law and regional conditions.

Cosmos Legal Law Office serves as a reliable partner, enabling investors to execute M&A transactions in Palestine safely, transparently, and strategically.