Merger and Amalgamation

Accountancy

Can anyone help in difference between Merger and Amalgamation? Thank you.

Rajasekaran Suresh

CA Inter

★ 495

20-Sep-22 23:21

633

Answers (4)

Merge means Marge company the object of companies maybe different and amalgamation mens Marge with similar Nature, object.

Saurabh Gupta

CA Foundation

★ 5K+

20-Sep-22 23:53

Incase of merger,two companies become a single company and the shareholders are same. Incase of amalgamation,the shareholders are either given option to retain their shares or they can be paid purchase consideration ie)may or may not continue as shareholders.One new company is formed after settling the old dues.

Shankari C

CA Inter

★ 12K+

21-Sep-22 00:25

e.g. There are two companies A and B When A and B merge to form AB it is merger When A amalgamates into B such that the resulting Company is B, it is called amalgamation.

Seemran Singh

CA Final

★ 4K+

21-Sep-22 08:51

Merger is generally used in cases where an the merging company loses its identity. For e.g. Merger of ING Vysya bank with Kotak. Howerever there is no hard and fast rule.

CA Suraj Lakhotia

Admin

21-Sep-22 17:16