Clyde & Co advises Mars on 100 per cent ownership of Dubai LLC
This transaction is one of the first of its kind since the UAE’s Foreign Direct Investment (FDI) Law paved the way for an increase in foreign ownership in companies incorporated onshore in the UAE.
Clyde & Co has advised leading confectionery and food manufacturer Mars on the acquisition of all of the shares in its subsidiary ‘onshore’ in Dubai. Prior to this transaction, Mars owned 49 per cent of the shares in the Dubai LLC, this being the maximum percentage of permitted foreign ownership in a company incorporated ‘onshore’ in an Emirate of the UAE.
This transaction is one of the first of its kind since the UAE’s Foreign Direct Investment (FDI) Law paved the way for an increase in foreign ownership in companies incorporated ‘onshore’ in the UAE.
Benjamin Smith, corporate partner at Clyde & Co in Dubai, commented, “Following the introduction of the FDI Law, Mars has been able to acquire 100 per cent of the shares in its LLC ‘onshore’ in Dubai. This is an important strategic development from a corporate structuring perspective for our client. This project would not have progressed without the hard work of the Mars team. The fact that Mars has been able to conclude this transaction reflects its significant and longstanding commitment and contribution to Dubai and the wider UAE. We were delighted to support Mars with the project.”
Hassan Hassan, general counsel, AMEA at Mars, said, “This is a significant milestone for Mars and will help strengthen our presence and development in the Middle East. Clyde & Co’s support on navigating the new FDI framework was a strategic contributor to the successful completion of the transaction.”
The Clyde & Co team was led by Benjamin Smith, who was assisted by Marwa El Gazzar (FDI specialist – corporate) and Priamvada Princeton (corporate specialist – Corporate), with additional support provided by Waleed Massoud and Salim Hares (government liaison managers) and Clyde & Co’s Corporate Services team.