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Vol. 16, Issue 1, Jul-Dec 2023

Page: 60-77

Merger Of Public Sector Companies From A Legal Perspective - A Comparative Study

Hussein Saad Yosif, Wael Al-Dubaisy

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The merger policy is one of the economic policies that has gained global fame, due to the successes it achieves in most developed and developing countries alike, as many countries have legislated these policies in their laws in order to achieve the desired economic goals and move towards a market economy, so they are a double-edged sword. It may be a means for the state to get rid of debts and the extinction that occurs in the commercial project, which in turn leads to the failure of that project. These two methods may be a means to achieve the state's economic goals and achieve development to advance the reality of these companies with both methods. The life of public sector companies may be affected by some unexpected or anticipated changes that these companies may face, which leads to the necessity of resorting to the merger option as an effective means to get rid of these problems that public sector companies are not able to continue in light of the economic difficulties. Therefore, it is a legal process that results in the final expiration of the legal personality of the public company as in liquidation, and the termination may be temporary with the emergence of a new legal personality or it may be an implicit continuation of the previous legal personality, as this procedure results in a set of effects that affect the company, employees and customers and has advantages and disadvantages as well. In fact, we find that despite the advantages and disadvantages that arise from these two methods, they are in fact one of the main solutions for the public company to get rid of the obligations that lead to its end. Public sector companies are among the largest money companies that are considered effective centers in the national economy, as these companies may face obstacles that limit their activity and growth as a result of an emergency or lack of prior planning or the combination of public company ownership and management, so the state resorts to merging these companies to get rid of their negative effects.

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