Dual-listed Company

A dual- listed company structure or DLC is a corporate structure with two registered companies and certain shareholders who operate together their operations.

In normal corporate takeover a company acquires the shares of another. At the creation of a DLC both companies exist with their respective shareholders on. They share the risks and profits in shares that are held in complex contracts. Usually, both companies are managed by a joint board and a common management. A DLC is similar to a joint venture, but both companies share their possessions and not just a project.

In almost all cases the parties are registered in various countries. The DLC status is usually chosen for tax reasons and released again. Questions of national pride occasionally play a role. For example, if both parties are both too strong for a takeover and therefore not accept a merger or acquisition, the enforcement of a DLC construct is sometimes easier because the country " be " with the smaller business enterprise does not lose that.

Examples

• BHP Billiton
• Brambles
• Carnival Corporation & plc
• Investec Bank
• Mondi
• Reed Elsevier
• Rio Tinto Group
• Unilever
• DP World
• Fortis (formerly )

Many DLC companies are primarily listed on the stock exchange of the country of incorporation, and secondarily on the venue of one or more other countries (secondary listing ) and also internally (such as Hewlett -Packard on the Nasdaq next to the New York Stock Exchange). However, co -listing is common for companies that have started in a small market and want to grow into a bigger one.

Occasionally, the term is dual -listed instead of co -listed or cross -listed.