difference Between merger and acquisition?

Answers were Sorted based on User's Feedback



difference Between merger and acquisition?..

Answer / rang pandey

Merger
The case when two companies (often of same size) decide to move forward as a single new company instead of operating business separately.
The stocks of both the companies are surrendered, while new stocks are issued afresh.
For example, Glaxo Wellcome and SmithKline Beehcam ceased to exist and merged to become a new company, known as Glaxo SmithKline.


Acquisition
The case when one company takes over another and establishes itself as the new owner of the business.
The buyer company “swallows” the business of the target company, which ceases to exist.
Dr. Reddy's Labs acquired Betapharm through an agreement amounting $597 million.

Is This Answer Correct ?    1 Yes 0 No

difference Between merger and acquisition?..

Answer / prafulla kumar panda

Merger means merging the one company with other company it
takes place only in same kind of business or business model.
Acquisition means acquiring the competitive and sick
companies to maintaining their dominance or extending their
empire.

Is This Answer Correct ?    0 Yes 0 No

Post New Answer

More Banking Finance Interview Questions

Why the company prefering prefence capitalrather than debenture capital?

4 Answers   IBS,


What is repo rate and the current repo rate?

0 Answers   State Bank Of India SBI,


Explain miscellaneous group ratios.

0 Answers  


What is the educational qualification required for marketing officer and asst. Manager posts?

0 Answers  


Please tell something about ex-president APJ Kalam. Why he was so popular?

0 Answers   Nabard,






14 principles of henery feyoul

2 Answers  


Explain fixed assets and investments

0 Answers  


What do you mean by limited liability?

0 Answers   State Bank Of India SBI,


What is dummy account? Is there any difference between dummy account and suspense account?

5 Answers  


What is Duty Draw-Back?

1 Answers  


What is usance promissory note?

0 Answers  


comment calculer p/v a la bourse

0 Answers  


Categories
  • Business Administration Interview Questions Business Administration (517)
  • Marketing Sales Interview Questions Marketing Sales (1279)
  • Banking Finance Interview Questions Banking Finance (3208)
  • Human Resources Interview Questions Human Resources (745)
  • Personnel Management Interview Questions Personnel Management (68)
  • Hotel Management Interview Questions Hotel Management (29)
  • Industrial Management Interview Questions Industrial Management (113)
  • Infrastructure Management Interview Questions Infrastructure Management (14)
  • IT Management Interview Questions IT Management (97)
  • Supply Chain Management Interview Questions Supply Chain Management (16)
  • Operations Management Interview Questions Operations Management (39)
  • Funding Interview Questions Funding (79)
  • Insurance Interview Questions Insurance (494)
  • Waste Management Interview Questions Waste Management (1)
  • Labor Management Interview Questions Labor Management (48)
  • Non Technical Interview Questions Non Technical (73)
  • Business Management AllOther Interview Questions Business Management AllOther (546)