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ABOUT MERGER AND AMALGAMATION

Amalgamation is the consolidation or combination of two or more companies known as amalgamating companies, typically companies that operate in the same or similar line of business, to form a completely new company, whereas merger refers to the consolidation of two or more business entities to form one single joint entity with a new management structure and new business ownership where both the consolidated companies are the same.

THE SIGNIFICANT DIFFERENCES BETWEEN AMALGAMATION AND MERGER

There is a subtle distinction since both procedures lead to the amalgamation of many firms.
Amalgamation is a sort of consolidation procedure done in conjunction with a merger.
The consequence of amalgamation is the establishment of a completely new firm. A merger, on the other hand, is a consolidation process in which the resultant business might be either new or existing.
A merger requires a minimum of two firms; however, an amalgamation requires a minimum of three companies.
The firms engaged in the merger process are of comparable size. However, the size of firms in the merger process differs since an absorbing company is assumed to be larger than an absorbed company.
During the amalgamation process, the assets and liabilities of the current entities are transferred to a completely new company. However, the assets and liabilities of the absorbed business are merged into the absorbing entity throughout the merger process.
During the merger process, shareholders of the absorbing business get shares of the absorbing company. Shares of the new entity established in the process, on the other hand, are distributed to the shareholders of the existing businesses in the amalgamation process.

MERGER AND AMALGAMATION

ABOUT MERGER AND AMALGAMATION

THE SIGNIFICANT DIFFERENCES BETWEEN AMALGAMATION AND MERGER

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