Mars general counsel hails milestone deal as it takes 100 percent ownership of Dubai LLC following new FDI law.
Confectionery and food manufacturer Mars, advised by global law firm Clyde & Co, has acquired all of the shares in its subsidiary 'onshore' in Dubai.
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. Hassan Hassan, general counsel, AMEA at Mars, hailed the deal “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.” Prior to this transaction, Mars owned 49 percent 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.
Benjamin Smith, corporate partner at Clyde & Co in Dubai, comments “Following the introduction of the FDI Law, Mars has been able to acquire 100 percent of the shares in its LLC 'onshore' in Dubai. This is an important strategic development from a corporate structuring perspective for our client.” He added, “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.” The Clyde & Co team was led by Mr Smith. The firm has forged a reputation as a go-to firm for FDI projects in the Middle East, with a specialist FDI team.