Merger of Companies

A merger is a structural change by which the assets of one or more commercial companies are transferred as a whole to another company and the shareholders of the transferring company become shareholders in the acquiring company. A merger by acquisition is where a company continues in existence by acquiring the assets of another company or companies as a whole; the transferring company is dissolved and struck off the trade registry. A merger by new formation is where the assets of several companies are combined in a newly formed company.