Merger Of Equals

Merger Of Equals
The combination of two firms of about the same size to form a single company. In a merger of equals, shareholders from both firms surrender their shares and receive securities issued by the new company.

A merger of equals is the most accurate definition of a merger. Most merger activity, even friendly takeovers, sees one company acquire another. When one company is an acquirer, it is proper to call the transaction an acquisition. Because one company is the purchaser and the other is for sale, such a transaction cannot be viewed as a merger of equals.

For example, the creation of DaimlerChrysler saw both Daimler-Benz and Chrysler cease to exist. Because neither firm acquired the other and a new company was formed, this is considered a merger of equals.


Investment dictionary. . 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • merger of equals — USA The merger of two companies of about the same size to form a single company. In a merger of equals, stockholders from both companies surrender their stock and receive stock issued by the new company, with each group of stockholders getting… …   Law dictionary

  • Merger of Equals — Mer|ger of Equals [ ɔv i:kvəlz], der; s , s [engl. merger of equals] (Wirtsch.): Zusammenschluss, Fusion von Firmen als gleichberechtigten Partnern: »Ein solcher M. o. E. beruht auf einem hohen Maß an gegenseitigem Vertrauen ... und ist keine… …   Universal-Lexikon

  • Banco de Oro-Equitable PCI Bank merger — The Banco de Oro Equitable PCI Bank merger (2004 December 27, 2006) is a plan by the SM Group of Companies and Banco de Oro Universal Bank, the fifth largest bank in the Philippines, to merge with Equitable PCI Bank, the third largest bank… …   Wikipedia

  • ABA–NBA merger — The ABA–NBA merger was the merger of the American Basketball Association with the National Basketball Association, which after multiple attempts over several years finally occurred in 1976. Contents 1 Origins of ABA NBA competition 2 Early… …   Wikipedia

  • two plus two equals five — Ⅰ. two plus two equals five (also 2+2=5) ► used to say that two organizations working together or merging can achieve more than if they work separately: »Two plus two equals five in this case and the solid foundation this merger creates will help …   Financial and business terms

  • Mergers and acquisitions — Merger redirects here. For other uses, see Merge (disambiguation). For other uses of acquisition , see Acquisition (disambiguation). Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis …   Wikipedia

  • Sirius XM Radio — Infobox Company name = Sirius XM Radio, Inc. logo = type = Public (NASDAQ|SIRI) foundation = XM 1988 (as American Mobile Radio Corporation) Sirius May 17, 1990 (formation of Sirius as Satellite CD Radio, Inc.) Sirius XM July 29, 2008 (acquisition …   Wikipedia

  • KeyBank — KeyCorp Type Public (NYSE: KEY) Industry Financial Services Founded 1825 …   Wikipedia

  • Daimler AG — This article is about the German automobile manufacturer. For the British automobile manufacturer, see Daimler Motor Company. Daimler AG Type Aktiengesellschaft Traded as FWB:  …   Wikipedia

  • Business and Industry Review — ▪ 1999 Introduction Overview        Annual Average Rates of Growth of Manufacturing Output, 1980 97, Table Pattern of Output, 1994 97, Table Index Numbers of Production, Employment, and Productivity in Manufacturing Industries, Table (For Annual… …   Universalium

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”