A new proposal in Delaware could alter the rules for controlling shareholders, making it easier for companies to get approved for mergers and acquisitions. Currently, transactions involving majority shareholders require approval from both minority shareholders and an independent committee.
However, under the proposed law, only one of these requirements would be necessary. The change would affect high-stakes deals like Paramount’s $8 billion acquisition of Skydance, which is currently facing a lawsuit alleging conflicting interests by Shari Redstone.
Lawyers say the impact on the M&A market may be minimal, as the “going private” exemption could allow companies to set up transactions that avoid stricter regulations. The proposal also allows for broader representation on independent committees.
The new law’s implications remain uncertain, but one thing is clear: in corporate dealings, there’s always a way to navigate complex rules.
Source: https://www.axios.com/2025/02/21/delaware-merger-bill-musk-tesla