Financial Glossary: Merger


en			ru			jp

Merger - absorption

Merger - absorption

Operation by which a company transfers the whole of its property to an absorbing company, against the attribution of shares of the latter to the shareholders of the former company, with possibly a balance in Cash.

It is the combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in Exchange for the surrender of their stock. Basically, when two companies become one. This decision is usually mutual between both firms.

Such actions are commonly voluntary and involve stock Swap or Cash payment to the target. Stock Swap is often used as it allows the shareholders of the two companies to share the Risk involved in the deal. A merger can resemble a takeover but result in a new company name (often combining the names of the original companies) and in new branding; in some cases, terming the combination a "merger" rather than an Acquisition is done purely for political or marketing reasons.

Posted by Opal Financial Group, Opal Financial Group

Back

Privatebanking.com

Get the attention you always wanted and promote your corporate image and standing by benefiting from our state of the art interactive web presence.

Ascent Limited

Experience The Difference. Ascent Limited provides first class wealth management and family office services. Our private banking team, assembled from a group of highly experienced banking professionals, will provide financial advice tailored to your individual requirements and keep your portfolio in tune with the latest market developments and opportunities.

©	Copyright by PRIVATE BANKING.COM 2002- - All rights reserved.