Jersey eases foreign company merger laws
Jersey is easing its merger laws, with the aim of enabling foreign companies to tap into Western markets.
An amendment to the Companies Regulations 2011 in Jersey Law paves the way for foreign-owned companies to access international and particularly European markets.
Due to come into force Wednesday 23 February, the new regulations enable Jersey companies to merge with both foreign companies and other foreign bodies outside of Jersey. Jersey companies will also be able to merge with other Jersey companies or bodies in Jersey.
All proposed mergers are subject to approval by Jersey’s regulator.
Emerging markets firms looking for opportunities in Europe are expected to be the beneficiaries of the new law, said chief executive of Jersey Finance Geoff Cook.
“We know from our visits to India that there is huge interest in bringing Indian capital into Europe, but also a need to recover and repatriate profits made from that capital investment back to India.
“These provisions will provide institutional investors in India and elsewhere with more options when they establish entities in Jersey to meet investment objectives,” he said.
Elsewhere in Asia, he said institutional and intermediary clients in Hong Kong and mainland China may wish to take advantage of the new provisions when considering the use of Jersey holding companies for listing on exchanges.
Jersey Finance is opening a representative office in Mumbai on 15 March, joining its one for Greater China. Both are likely to be used to advocate the new merger provisions.