Transformations  in
Business & Economics

Economic and Legal Aspects of Company Acquisition and Mergers in the Czech Republic
Jindriska Sedova

ABSTRACT. Expected accession of the Czech Republic into the European Union gives a new stimulus to activities that are leading to the incorporation of firms, particularly to mergers and acquisitions (M&A). Liberalization of energy, transport, telecommunication and postal services will clearly accelerate many transactions related to privatisation, which cause enhanced activity in the field of M&A.

The aim of the paper is to analyse the fundamental economic and legal aspects of the development of the Czech economy over the last decade motivating foreign companies to invest in the Czech Republic. It deals with the reason for decreased rating of the Czech Republic caused by low level of legal rules in business. The paper appraises the qualitative changes in the system of the Czech legal regulation of mergers and acquisitions and. the level of approximation of the European law. It identifies the legal instruments strengthening the foreign investors.

KEYWORDS: Czech Republic, laws in business, mergers and acquisitions, foreign direct investment.