Legal Question in Business Law in India
What is the difference between Merger & Amalgamation?
What is the difference between Takeover & Acquisitions?
1 Answer from Attorneys
Merger-One company is taken over by the other company and only the company taking over remains in existence.
Amalgamation-Two or more existing companies amalgamates and a new company is formed.As such all existing companies amalgamating disappears and a new company comes into the existence.
There is no tangible difference between an acquisition and a takeover; both words can be used interchangeably - the only difference is that each word carries a slightly different connotation. Typically, takeover is used to reference a hostile takeover where the company being acquired is resisting. In contrast, acquisition is frequently used to describe more friendly acquisitions, or used in conjunction with the word merger, where both companies are willing to join together.
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