Bahrain – CB Amendments to Takeover and Mergers

Bahrain – CB Amendments to Takeover and Mergers

On 12 November 2023, BHR CB issued amendments to the TMA module.

  • BHR CB issued letter re amendments to takeovers, mergers and acquisitions module under CBB rulebook volume 6 regarding Independent advice and shareholder approval.
  • Follows BHR CB consultation on takeovers and mergers amendments.


  • Removed text re obtaining independent advice whether offer is in shareholder interest.
  • Divergent views among board members must be stated in in offeree board circular.
  • Include arguments for recommendation to shareholders re offer acceptance, rejection.
  • If director has conflict of interest he must not be joined with the rest of board in views expression on offer and disclosing conflict in the offeree board circular to shareholders.
  • Directors of offeree company in conflict of interest notifies offeree company’s board and their interest and must not vote on resolution to be adopted in regards of offer.
  • Offeree company board should establish independent committee of board to discharge board’s responsibilities related to offer or it resides primarily with professional adviser.
  • Conflict of interests includes significant cross shareholdings min with 10% between offeror and the offeree company or a number of directors common to both companies.
  • Also common controlling shareholder in both companies implies a conflict of interests.
  • Deleted paragraphs 2.2.11, 2.2.12, 2.2.13 of TMA Module chapter 2 of CBB rulebook.


  • Requirements are effective immediately, on 12 November 2023, and published on CBB website.