• The combination of two or more firms, in which the resulting firm maintains the identity of one of the firms, usually the larger one.
• (1) Acquisition in which all assets and liabilities are absorbed by the buyer. (2) More generally, any combination of two companies.
• The combination 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.
| ||Embedded terms in definition|
| ||Acquiring company|
| ||Referenced Terms|
| ||Acquiring company: The firm in a Merger transaction that attempts to acquire another firm.|
| ||Acquisition of assets: A Merger or consolidation in which an acquirer purchases the selling firm's assets.|
| ||Acquisition of stock: A Merger or consolidation in which an acquirer purchases the acquiree's stock.|
| ||Appraisal rights: A right of shareholders in a Merger to demand the payment of a fair price for their shares, as determined independently.|
| ||Coinsurance effect: Refers to the fact that the Merger of two firms decreases the probability of default on either firm's debt.|
| ||Related Terms|
| ||Congeneric merger|