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KembaraXtra – Legal Terms – Merger
In company law, a merger refers to the combination of two or more companies of broadly similar size into a single business structure. This may occur through the creation of a new company or by one company absorbing another, often by exchanging shares between shareholders.
Many mergers are achieved through takeover bids and are subject to regulatory supervision, especially where they may affect market competition. Under European Union merger rules, large mergers with significant turnover across member states may require notification to EU authorities for review.
In land law, the term merger has a different meaning. It describes the extinguishing of a smaller interest in land when it becomes vested in the same person who owns a larger interest. For example, if the owner of a freehold later acquires the leasehold interest over the same property, the leasehold may merge into the freehold, depending on the parties’ intentions and surrounding circumstances.
In company law, a merger refers to the combination of two or more companies of broadly similar size into a single business structure. This may occur through the creation of a new company or by one company absorbing another, often by exchanging shares between shareholders.
Many mergers are achieved through takeover bids and are subject to regulatory supervision, especially where they may affect market competition. Under European Union merger rules, large mergers with significant turnover across member states may require notification to EU authorities for review.
In land law, the term merger has a different meaning. It describes the extinguishing of a smaller interest in land when it becomes vested in the same person who owns a larger interest. For example, if the owner of a freehold later acquires the leasehold interest over the same property, the leasehold may merge into the freehold, depending on the parties’ intentions and surrounding circumstances.
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