difference Between merger and acquisition?
Answer Posted / madhu
In the case of a merger, two companies A and B combine (or
merge) to form a third company C. The two companies A and B
cease to exist and they togrther are called as C. The
shareholders of the two companies A and B now become share
holders of a third company C. Merger generally occurs if
the two companies are of same or similar size
In the case of acquisition, one company acquires another.
If company A acquires company B, company B ceases to exist
and company A continues to exist. The share holders of
company B now become the share holders of company A. In
this case, the size of company a should be larger that that
of B
| Is This Answer Correct ? | 5 Yes | 1 No |
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