Saturday, August 27, 2011


Difference between Company Merger & Amalgamation?
the word "merger" or "amalgamation" means "combining of two companies into one" . respectively.
Merger is a fusion between two or more enterprises, whereby the identity of one or more is lost and the result is a single enterprise.
 for example few years ago you see “centurian bank of Punjab” is merge with “hdfc bank” Amalgamation signifies blending of two or more existing companies into one company, the blended companies losing their identities and forming themselves into a separate legal identity.for example nirma and core health care amalgamation.
Very often, the two expressions "merger" and "amalgamation" are taken as same. But there isa very minor difference. Merger is restricted to a case where the assets and liabilities of the companies get vested in another company, the company which is merged losing its identity and its shareholders becoming shareholders of the other company.
On the other hand, amalgamation is an arrangement, whereby the assets and liabilities of two or more companies become vested in another company (which may or may not be one of the original companies) and which would have as its shareholders substantially, all the shareholders of the amalgamating companies.

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