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Acquisition in Saudi Arabia

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Acquisition in Saudi Arabia

An acquisition refers to the process of gaining control of a corporation , called a target by stock purchase or exchange . Acquisitions can either be hostile or friendly depending on the willingness of the target . Acquisitions may also be termed as take-overs (investor words The recent economic reforms in Saudi Arabia have caused it to earn a reputation as being the hub of business in the Middle East . This is however debatable but of certainty is Saudi Arabia has become exposed to

acquisitions and mergers . The economic reforms were initiated to cut back on losses occasioned by years of instability owing to wars and poor economic policies

The country has in the recent past implemented various programs to improve the business environment while offering various incentives to attract foreign investors in key sectors of the economy . These efforts have ultimately borne fruits by attracting foreign investors leading to acquisitions of the country 's existing corporations (KPMG , 2010 Richardson , 2005

The acquisitions that are happening in Saudi Arabia are however not limited to foreign investors . Local corporations already operating in the country are also acquiring the assets of other companies in a bid to boost their market share . A case in point is the recent acquisition of Al Khafrah industrial gases by Air Liquide . The acquisition has helped to strengthen the position of Air Liquide in the Middle East market in addition to increasing its market share

Acquisitions by foreign investors have led to a...

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