Legal Question in Business Law in India

What is the difference between Merger & Amalgamation?

What is the difference between Takeover & Acquisitions?


Asked on 4/08/11, 1:20 pm

1 Answer from Attorneys

KarVai Legal Solutions Rajiv Gupta 9811284735 Ch.No: 359, Western Wing, Tis Hazari, Delhi www.karvai.in

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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Answered on 5/15/11, 1:45 am


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