Merger

Merger attributes to the combination of two or more than two business entities into a single business entity which continues to exist in the future and others lost their commercial existence in the market. The existing and the continuing company acquires all the stocks, assets and liabilities of the abolished companies. Mergers are mainly done to uplift a share of the whole industry, diminished expenses of activities, extend to recent regions, connect usual services and extend incomes and increment benefits- all of which can incur revenue to the shareholders. Merger is unlike to consolidation. It demolishes the privileges, rights and liabilities of the abolished company. It is a technique by which companies unite their ownership which was earlier controlled by different bodies.

Acquisition

An acquisition means a major business entity attaining a minor firm. It is the process of attainment of all or a particular section of a company’s assets of the intended business. A merger is similar to an acquisition but shows more stringently to the merging of both or all the companies into a stronger distinct company. The final consequence of the acquisition is to develop the industry in more rapid and beneficial manner. An acquisition is the attainment of one company by another company in which new corporation is produced.

Mergers and Acquisition in India

In the past few years, India has shown the greatest with regard to the case of merger and acquisitions. It is being efficiently cooperated in various sectors in Indian market. Number of Indian companies have been growing in an organic manner to achieve admission to latest business corporations and numerous foreign companies are aiming the Indian companies for their escalation as well as growth.