Economic Development Minister Alan Maclean.

PLANS to change the law to allow Jersey companies to merge with overseas businesses are being put out to consultation.

At present, it is only possible to merge Island registered companies with another Jersey company.

However, with more and more business being conducted across national borders there is a growing demand for locally-registered companies to be able to merge with foreign companies.

There is also a growing demand for bodies other than companies, such as foundations, to be allowed to merge.

The introduction of cross-border mergers is legal in Jersey law but the current two-stage process is cumbersome, potentially time consuming and could be costly. Other competing jurisdictions, including Guernsey, have already changed their laws to accommodate cross-border mergers.

A consultation paper on proposals to change the law here has been prepared to give interested parties an opportunity to comment.

Economic Development Minister Alan Maclean said he was pleased that work had reached the stage of public consultation.

See Wednesday’s JEP for full story and more business news.