WHAT IS MERGERS ? Image By:- iPleaders Blog.com Introduction to Mergers The merger refers to combining two or more companies into one companioning two or more companies into one company. It can either be done by merging of one or more companies into the existing company or framing a new to the existing company or framing a new company by merging two or more existing company. The word 'amalgamation is used for the merger by the Income Tax Act, The merger is done in the following two types: · Merger by absorption:- Combining two or more companies into the existing company are known as absorption. In this merger, one company loses its entity and goes into liquidation and all other companies remain the same. For example, there are two companies A Ltd. and B Ltd., company B Ltd. is merged in the assets and liabilities of company B Ltd will be acquired by company A Ltd. and company B Ltd. will be liquidated. For example, in India, there was a merger
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