Document background
The Letter Of Intent Merger is a crucial preliminary document used in Belgian corporate transactions when two or more companies are contemplating a merger. It serves as a roadmap for the proposed transaction, typically drafted after initial discussions but before detailed due diligence and definitive agreements. The document outlines the fundamental understanding between the parties, including proposed valuation, structure, timeline, and key conditions, while typically maintaining non-binding status except for specific provisions like confidentiality and exclusivity. Under Belgian law, this document must consider both national corporate legislation (Belgian Code of Companies and Associations) and potential EU merger control requirements. It's particularly important as it sets the stage for more detailed negotiations while providing protection for both parties during the exploratory phase of the merger process.
