what is Merger cs final cri notes



Posted on 03-04-2016        By ADMIN



what is Merger cs final cri notes

what is Merger :

Mergerit the fusioin or absorption of one thing or right into another. Thus, mergeris an arrangement whereby the assets of two or more companies become vested inor under the control of one company, which may or may not be one of theoriginal two companies, which has as its shareholders, all or substantiallyall, the shareholders of the two companies.

Itmay be noted that generally the terms merger and amalgamation are used interchangeably.

However,in strict sense, merger is commonly used for the fusion of two companies.

Mergeris normally a strategic vehicle to achieve expansion, diversification, entryinto new markets, acquisition of desired resources, patents and technology,etc. whereas amalgamation is an arrangement for bringing the assets of twocompanies under the control of one company, which may or may not be one of theoriginal two companies.



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