Oman close to finalising new takeover code

Author: Lizzie Meager | Published: 12 Aug 2015

The Capital Markets Authority (CMA) of Oman has proposed new legislation governing takeovers of publicly listed companies.

While market participants have largely commended its comprehensive scope, some believe the law is not entirely in keeping with the operations of local capital markets.

"The point is, the reality on the ground doesn’t match the regulation. Historically there just haven’t been many takeovers in Oman," said Ardeshir Patel, partner at Al Busaidy Mansoor Jamal & Co.

This is because regulatory consent is needed in an acquisition of more than 25% of a company’s shares, and that approval can be hard to come by.

"Given that there aren’t many listed companies on the bourse to start with, the CMA...