Mergers and Acquisitions in Slovakia
Mergers and Acquisitions in SlovakiaUpdated on Monday 22nd April 2019
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Mergers and acquisitions (M&A) in Slovakia are very advantageous for foreign entities as they benefit from the same regulations as domestic companies. This one of the main reasons the Slovak M&A market has evolved during the last few years and many local companies are now thriving. Depending on the type of company to merge or be acquired, the requirements and the rules for the transaction will be different, which is why counsel from a Slovak law firm is advisable.
Legislation related to M&As in Slovakia
There are several laws covering merger and acquisition transactions in Slovakia. Among these, the Commercial Law and the Securities Law are the most important. M&As in industries like banking and insurance are treated by the Banking Law, respectively the Insurance Companies Law. The stock exchange legislation covers transactions involving companies listed on the Bratislava Stock Exchange. Other laws related to mergers and acquisitions in Slovakia are the employment legislation which provides for what happens to employees in this type of transactions and the Bankruptcy and Restructuring Act which provides for transactions involving insolvent companies.
Merger and acquisition regulations in Slovakia
The Commercial Code establishes that Slovak joint stock companies will be subject to stricter conditions when undergoing a merger or an acquisition, especially if their shares are traded on other European stock exchanges.
Acquisitions in Slovakia are divided into:
- - transactions with shares of private companies;
- - transactions with shares of public companies;
- - asset deals which implies the partial or complete purchase of a company.
In merger transactions involving local private joint stock companies, an independent expert must be appointed by a Slovak court in order to verify the agreement. The company must also provide the purchasing party with its financial reports for the last 3 years. In the case of public companies, the bid procedure applies. The company must sell at least 33% of the voting shares. The transaction can take from several weeks to several months, especially when taking into consideration the anti-monopoly legislation.
For complete information about the paperwork related to mergers and acquisitions, do not hesitate to contact our Slovak lawyers.