Meaning of merger and acquisitions:-
The combining of two companies to form one entity, suggesting a balance of strength and willingness between the two to join forces. This is not necessarily the case. Companies talk of mergers and acquisitions when they really mean takeover, sometimes hostile, but the former term is more sensitive to the feelings of the target company.
Definition:-
Merger
A full joining together of two previously separate corporations. A true merger in the legal sense occurs when both businesses dissolve and fold their assets and liabilities into a newly created third entity. This entails the creation of a new corporation.
example:
deccan airways and kingfisher
jet airways and air sahara
Acquisition
Taking possession of another business. Also called a takeover or buyout.
example:
tata corus, arcelor mittal
1 comment:
Mergers and acquisitions are common conditions used to make reference to the combination of organizations. A merger results when two organizations come together to type a single company. Mergers are similar to products, not including that in mergers, current stockholders of both organizations sustain a distributed interest in the new increased enterprise. The shareholding design may differ, based on the assessment of organizations involved. When one organization purchases out the managing or significant part of another organization's stock, it is known as as acquisitions. The customer organization takes over the other organization. It makes an irregular stability of possession. No new organization is established in case of products.
Mergers Acquisitions
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