This article critically examines the legal framework governing mergers and acquisitions (M&A) in Jordan, with particular reference to the Companies Law No. 22 of 1997. Although the existing framework facilitates corporate restructuring in principle, it remains characterised by legislative ambiguity and insufficient governance safeguards. The study identifies several structural deficiencies, including the absence of clear statutory definitions of mergers and acquisitions, weak protection for minority shareholders and creditors, inadequate disclosure obligations, and the lack of mandatory independent valuation mechanisms. These deficiencies generate legal uncertainty, increase litigation risks, and undermine investor confidence in the M&A process. Using a qualitative doctrinal research methodology, this article analyses statutory provisions, regulatory instruments, and selected judicial decisions to evaluate the effectiveness of the current legal regime. The findings reveal that legislative gaps have compelled the judiciary to rely on interpretative intervention, resulting in inconsistent and unpredictable outcomes. This article contributes to the literature by providing a governance-oriented critique of Jordan’s M&A framework and proposing targeted legal reforms aligned with international best practices. It recommends legislative clarification, enhanced minority shareholder exit rights, strengthened creditor protection mechanisms, mandatory independent valuation requirements, and expanded disclosure obligations to promote transparency, fairness, and regulatory certainty in Jordan’s corporate restructuring landscape.
Al-Adwan, Z. (2015). Al-indimaj wa al-istihwal fi al-tashri‘ al-Urduni: Dirasah muqaranah. Dar Al-Thaqafa.
Al-Adwan, Z. (2017). Al-indimaj bayna al-sharikat fi al-tashri‘ al-Urduni. Majallat Al-Qanun wal-Iqtisad, 5, 112–130.
Al-Daoud, K., Alhorani, A., Dabaghia, M., Alkhazali, Z., & Altrjman, G. (2021). Corporate governance in Jordan: Institutional background and literature review. International Journal of Management, 12(11), 2706–2716.
Al-Eisawi, R. (2018). Al-itar al-qanuni lil-indimaj wal-istihwal fi al-tashri‘ al-Urduni: Dirasah muqaranah. Majallat Al-Huquq wal-‘Ulum Al-Siyasiyah, 10, 55–78.
Al-Filiti, S. B. S. B. H. (2020). Athar indimaj al-sharikat ‘ala huquq al-du‘ana’: Dirasah tahliliyah muqaranah bayna al-qanun al-‘Umani, al-Misri, wa al-Urduni. Al-Majallah Al-Qanuniyah, 8, 383–410.
Al-Ghamdi, K. (2020). Al-indimaj wal-istihwal fi al-sharikat al-tijariyah: Dirasah muqaranah. Majallat Jami‘at Al-Malik ‘Abd Al-‘Aziz: Al-Iqtisad wal-Idarah, 34(2), 155–180.
Aleqedart, H. Q. (2020). The barriers and challenges of corporate governance in Jordanian companies: An evaluation of the reality of corporate governance in Jordan. International Journal of Economics and Business Administration, 4(2), 69–81.
Alrwabdah, F., & Lok, C. L. (2024). Corporate governance, ownership structures and firm performance: Evidence from Jordan. International Journal of Academic Research in Business and Social Sciences, 14(8), 2360–2385.
Alshunnaq, M. F. N. (2025). Legal effects and administration of bank acquisitions in Jordan: A review of the literature. Prawo i Wi??, 54(1). https://doi.org/10.36128/priw.vi54.1007
Bindabel, W., Patel, A. M., & Yekini, K. (2017). The challenges faced by integrating Islamic corporate governance in companies of Gulf countries with non-Islamic companies across borders through merger and acquisition. Journal of Islamic Accounting and Business Research, 3(1), 29–38.
Chernov, A. V. (2023). Updating of legal regulations as a tool to reduce property and legal risks during mergers and acquisitions. Entrepreneur’s Guide, 16(4), 72–76. https://doi.org/10.24182/2073-9885-2023-16-4-72-76
Fügemann, C. H. (n.d.). Merger profitability and control: An analytical and empirical ex-post analysis on the increasing merger activity (Doctoral dissertation). WHU – Otto Beisheim School of Management. https://doi.org/10.70897/whu.dis.0071
Ibrahim, J. (2006). Teori dan metode penelitian hukum normatif (2nd ed.). Bayumedia Publishing.
Krippendorff, K. (2004). Content analysis: An introduction to its methodology (2nd ed.). Sage Publications.
Sert, O. V. (2025). Compulsory one-tier corporate governance structure as a structural presumption in antitrust law. Analytical and Comparative Jurisprudence, (2), 377–383. https://doi.org/10.24144/2788-6018.2025.02.54
Shanikat, M., & Abbadi, S. S. (2011). Assessment of corporate governance in Jordan: An empirical study. International Journal of Business and Social Science, 2(22).
Alqaraleh, S. S. S., Aziz, H. A., Mohammed, A. A. S., Mohammad, S. N. A. S. N., & Ghadas, Z. A. A. (2026). Merger and Acquisition Governance in Jordan: A Critical Legal Analysis. International Journal of Academic Research in Business and Social Sciences, 16(1), 718-725.
Copyright: © 2026 The Author(s)
Published by Knowledge Words Publications (www.kwpublications.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
