What steps are needed for a share purchase merger in Uganda, and how long does due diligence take?

In Uganda
Last Updated: Nov 18, 2025
I'm negotiating a share purchase to merge my Uganda-based company with another local business. What due diligence should I conduct (financial, legal, regulatory) and which approvals are needed from the Competition Authority of Uganda? What timelines apply and how can minority shareholders be protected during the process?

Lawyer Answers

Nomad Advocates

Nomad Advocates

Nov 18, 2025
Share transfer arises from a legal sell or purchase of shares from another Company which is allowed in Uganda. You need a lawyer to first review the compnay memorandum and articles of association and then draft a share purchase agreement with he terms of share sale. Just like any other contract. The company has to convene a meeting and approve this transaction and thereafter effect the changes to the company incorporation structure after a share valuation is conducted. As for mergers, a lot of factors have to be considered which your email does not details. The new Anti-competition Act also requires that an approval is obtained before a merger is effected. As for the due diligence, you have to look at matters like business as a going concern, tax and litigation matters, statutory compliance issues, third party interest on the shares for mortgages (SIMPA) etc before any purchase of company shares.
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