Scribd
Upload
52 views2 pages

Merger 1

There are three main types of business combinations: mergers, acquisitions, and amalgamations. A merger involves two companies combining to form an entirely new entity, while an acquisition sees a larger company purchase a smaller one. Amalgamation is similar to a merger but results in one of the original companies maintaining control over the new combined entity.

Uploaded by

maryamfarq
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
52 views2 pages

Merger 1

There are three main types of business combinations: mergers, acquisitions, and amalgamations. A merger involves two companies combining to form an entirely new entity, while an acquisition sees a larger company purchase a smaller one. Amalgamation is similar to a merger but results in one of the original companies maintaining control over the new combined entity.

Uploaded by

maryamfarq
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 2

Merger

The combination of two or more companies, generally by offering the stockholders of one
company securities in the acquiring company in exchange for the surrender of their stock.

Basically, when two companies become one. This decision is usually mutual between both firms.

Mergers

Mergers are business combination transactions involving the combination of two or


more companies into a single entity. Most state laws require that mergers be
approved by at least a majority of a company's shareholders if the merger will have
a significant impact on either the acquiring or target company.

Acquisition
Definition
Acquiring control of a corporation, called a target, by stock purchase or exchange, either
hostile or friendly, also called takeover.

Amalgamation, meaning to combine or unite into one form,

Definition
The merging of two or more businesses into single entity.
A consolidation or merger, as of several corporations.

Definition

Combination of two or more firms, into either an entirely new firm or a subsidiary
controlled by one of the constituent firms.

Merger is a tool used by companies for the purpose of expanding their operations often
aiming at an increase of their long term profitability.

Amalgamation: This refers to the situation whereby two companies comes together to
form one.

An acquisition, also known as a takeover, is the buying of one company (the ‘target’) by
another. An acquisition may be friendly or hostile. In the former case, the companies
cooperate in negotiations; in the latter case, the takeover target is unwilling to be bought
or the target's board has no prior knowledge of the offer. Acquisition usually refers to a
purchase of a smaller firm by a larger one. Sometimes, however, a smaller firm will
acquire management control of a larger or longer established company and keep its name
for the combined entity. This is known as a reverse takeover.
Difference b/w merger and amalgamation:

Merger is restricted to a case where the assets and liabilities of the companies get
vested in another company, the company which is merged losing its identity and its
shareholders becoming shareholders of the other company. On the other hand,
amalgamation is an arrangement, whereby the assets and liabilities of two or more
companies become vested in another company (which may or may not be one of the
original companies) and which would have as its shareholders substantially, all the
shareholders of the amalgamating companies.

You might also like