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Kindly highlight the points of difference between mergers, amalgamation, absorption, combination
From India , Delhi
the difference between amalgamation and merger is that in case of merger one company will be acquired or squeezed by a big company, but in case of amalgamation two or three companies will be winded up to form a new entity, here winding up of companies is done to create a new company .

dear Madam leena,
Merger is a synonym word to amalgamation. Amalgamation is two or more different companies joined to form a new co.
Just like:
Co.A + Co.B == Co.C
Absorption is a process where a company takes another company and the former company will only be there.
Just like:
Co. A <--Co.B ==Co. A . ie., Co. B is swallowed by Co. A

From India ,
Dear All,

Please read carefully to overcome from all doubts......

Amalgamation and Mergers are not defined under companies act, 1956.
amalgamation is defined under income tax act 1961 and under accounting standard 14.

As per section 2(1B) Amalgamation , in relation to companies means the merger of one or more companies with another company or the merger of two or more companies to form one company in such a manner that all properties and liablities of the amalgamating company become the properties and liablities of the amalgamated company by virtue of the amalgamation and ;
shareholders value wise 3/4 of amalgamating company should become member of amalgamated company by virtue of amalgamation.

Above defination says that ::::::

Merger is to expand the business but when the main and only purpose of the transaction is pooling of assets then it is known as amalgamation.

further in AS-14 two types of mergers are defined
1. amalgamation in the nature of merger.
2. amalgamation in the nature of purchase. is an aquisition of shares carrying voting rights in a company with a view to gain control over the management of the company...



From India , Delhi
Amalgamation, as its name suggests, is nothing but two companies becoming one. On the other hand, Absorption is the process in which the one dominant company takes control over the weaker company. These are two business strategies adopted by the companies to expand itself and take a competitive position in the market. But, here one should know that Amalgamation can occur in two ways i.e. in the form of merger or the form of absorption. Amalgamation is the legal process, in which two or more companies combine themselves to form a new company. On the other hand, absorption is when two or more companies are combined into an existing company.
• A merger is where two companies merge to form a new entity (A + B = C).
• An acquisition is where ‘Entity A’ acquires ‘Entity B’, and folds it into ‘Entity A’ post-closing. ‘Entity B’ would typically cease to exist post-closing, or would exist as a division or child of the parent company (‘Entity A’).
The REAL WORLD Difference - In the real world
• A merger (combination) is where two equal companies merger to form a new company. For example, AOL & Time Warner merge to form AOL-Time-Warner.
• An acquisition is where a larger company ‘acquires’ a smaller company. For example, where Apple acquires Beats.

From India,
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