Authors :
Manvi Goyal
Volume/Issue :
Volume 9 - 2024, Issue 1 - January
Google Scholar :
http://tinyurl.com/2zvjfba2
Scribd :
http://tinyurl.com/2s3dwa9p
DOI :
https://doi.org/10.5281/zenodo.10539094
Abstract :
Mergers occur when two or more companies decide to combine their operations, assets and
resources to form a new, larger company. The process of mergers typically involves negotiations
between the companies, including discussions on the terms of the merger agreement, such as the
valuation of the companies, the structure of the new entity and the roles and responsibilities of the
management team.
Mergers can be made by two methods:
Mergers through absorption: In these kinds of mergers two or more companies combine into any of
the existing participating company. One company is absorbed into another. For example, Philips
Carbon Black Limited (PBCL) and RPG merged with its wholly owned subsidiary Transmission
Holidays Limited (THL) which is an investment company.
Mergers through Consolidation: These kinds of mergers result when two or more companies
combine and form an entirely new company. The new combined company is legally a new entity.
Which company ends, in return get cash or shares of the acquiring company.
Mergers occur when two or more companies decide to combine their operations, assets and
resources to form a new, larger company. The process of mergers typically involves negotiations
between the companies, including discussions on the terms of the merger agreement, such as the
valuation of the companies, the structure of the new entity and the roles and responsibilities of the
management team.
Mergers can be made by two methods:
Mergers through absorption: In these kinds of mergers two or more companies combine into any of
the existing participating company. One company is absorbed into another. For example, Philips
Carbon Black Limited (PBCL) and RPG merged with its wholly owned subsidiary Transmission
Holidays Limited (THL) which is an investment company.
Mergers through Consolidation: These kinds of mergers result when two or more companies
combine and form an entirely new company. The new combined company is legally a new entity.
Which company ends, in return get cash or shares of the acquiring company.
