{"id":26341,"date":"2026-04-03T18:56:24","date_gmt":"2026-04-03T18:56:24","guid":{"rendered":"https:\/\/www.samco.in\/help-support\/?post_type=ht_kb&#038;p=26341"},"modified":"2026-04-03T18:56:47","modified_gmt":"2026-04-03T18:56:47","slug":"what-is-a-merger-or-acquisition","status":"publish","type":"ht_kb","link":"https:\/\/www.samco.in\/help-support\/article\/what-is-a-merger-or-acquisition\/","title":{"rendered":"What Is a Merger or Acquisition?"},"content":{"rendered":"\n<p>A merger is when two companies combine to form a single entity. An acquisition is when one company purchases another and takes control of it. Both are corporate actions that directly affect shareholders of the companies involved.<\/p>\n\n\n\n<p><strong>Merger<\/strong><\/p>\n\n\n\n<p>In a merger, shareholders of both companies typically receive shares of the newly formed or surviving entity. The ratio in which shares are exchanged is called the swap ratio : decided based on the valuation of both companies.<\/p>\n\n\n\n<p><strong>Acquisition<\/strong><\/p>\n\n\n\n<p>In an acquisition, the acquiring company buys a controlling stake in the target company. Shareholders of the target company may receive cash, shares of the acquiring company, or a combination of both depending on the deal structure.<\/p>\n\n\n\n<p><strong>Amalgamation<\/strong><\/p>\n\n\n\n<p>An amalgamation is similar to a merger &#8211; two or more companies combine into one. The difference is largely legal and structural. The end result for shareholders is similar : existing shares are exchanged for shares of the merged entity.<\/p>\n\n\n\n<p><strong>What happens to the target company&#8217;s stock?<\/strong><\/p>\n\n\n\n<p>Once a merger or acquisition is completed and approved, the target company&#8217;s shares are delisted from the exchange. Shareholders receive the agreed consideration shares, cash, or both in place of their original holding.<\/p>\n","protected":false},"author":65,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":[],"ht_kb_category":[2865],"ht_kb_tag":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/26341"}],"collection":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb"}],"about":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/types\/ht_kb"}],"author":[{"embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/users\/65"}],"replies":[{"embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/comments?post=26341"}],"version-history":[{"count":1,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/26341\/revisions"}],"predecessor-version":[{"id":26343,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/26341\/revisions\/26343"}],"wp:attachment":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/media?parent=26341"}],"wp:term":[{"taxonomy":"ht_kb_category","embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb_category?post=26341"},{"taxonomy":"ht_kb_tag","embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb_tag?post=26341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}