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Merger Of Title |
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Merger Of TitleA lesser interest in real property being merged (absorbed) into a greater interest. For example: A lessee purchases the property being leased. The interest as a lessee is merged into the interest as an owner, thus ending the leasehold interest.Merger Of Title Similar MatchesConglomerate mergerConglomerate mergerA merger involving two or more firms that are in unrelated businesses. Horizontal mergerHorizontal mergerA merger involving two or more firms in the same industry that are both at the same stage in the production cycle; that is, two or more competitors. Vertical mergerVertical mergerWhen one firm acquires another firm that is in the same industry but at another stage in the production cycle. For example, the firm being acquired serves as a supplier to the firm doing the acquiring. City code on takeovers and mergersCity code on takeovers and mergersSee: Dawn raid DemergerDemergerA corporate restructuring in which one part of a company is spun off as a new company, often with quoted status of its own. Examples in the UK include Zeneca which was spun out of ICI, and Argos which was spun out of British American Tobacco.Like their opposite - mergers - demergers tend to go in and out of fashion. When share prices are rising, companies like to use their 'paper' (i.e. shares) to acquire other companies, so their advisers encourage merger activity. In a market of falling prices, mergers and IPOs are less popular, and the merchant banks who earn their fees from corporate activity will start to look at demerger possibilities for their clients.From a tax point of view, when Company A splits into two or more parts, and distributes shares in each part to its original shareholders, there is no disposal for CGT purposes.In a study of 38 demergers, the London School of Economics found that demergers are beneficial to shareholders both at the time of the announcement and in the two years following. Further SuggestionsPanel on Takeovers and MergersFriendly Merger Statutory merger Merger Arbitrage merger |
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