Mergers: Sec. 2(1A) of Income Tax Act - Merger (amalgamation) is - TopicsExpress



          

Mergers: Sec. 2(1A) of Income Tax Act - Merger (amalgamation) is integration or combination of two or more companies, but only one company runs business. It can be done by (a) Purchase of assets (b) Purchase of common Stock (c) Exchange of stock for assets (d) Exchange of stock for stock Types of mergers: (a) Horizontal Merger - companies engaged in same type of business (Scooter company merging with scooter co) (b) Vertical Merger - companies engaged in diff stages of a product (Suppliers, vendors, spare parts manufacturer etc) (c) Conglomerate Merger - companies engaged in different fields of business activities (Scooter co. merging with cement co) (d) Congeneric Merger - companies in same industry but different business line (Scooter co. merging with bike co or car co)
Posted on: Thu, 11 Dec 2014 10:55:32 +0000

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