Document background
The Share Acquisition Agreement is a fundamental document used in corporate transactions in Saudi Arabia when one party wishes to acquire ownership in a company through the purchase of shares from existing shareholders. This agreement is essential for both domestic and cross-border transactions, subject to Saudi Arabia's foreign investment regulations and Companies Law. The document typically includes comprehensive details about the transaction structure, valuation, warranties, conditions precedent (including regulatory approvals), and post-completion obligations. It requires careful consideration of Saudi Arabian legal requirements, including Ministry of Commerce approvals, competition law implications, and sector-specific regulations. The agreement serves as the primary transaction document and often forms part of a larger suite of documents including shareholders' agreements and corporate governance arrangements.
