M&A

M&A (abrv. mergers&acquisitions)- a class of economic processes of business and capital consolidation taking place at macro and microeconomic levels, as a result of which larger companies appear on the market.

A merger is the union of two or more business entities, resulting in the formation of a new economic unit.

  • The merger of forms is a union in which merged companies cease to exist as autonomous legal entities and taxpayers. A company formed through a merger takes control and management of all assets and liabilities to customers of the companies that participated in the merger.
  • Merger of assets is a business combination in which: owners of the companies transfer exclusive control rights over their companies to the newly  created company as a contribution to the authorized capital; the activities and legal form of companies are retained.

Acquisition - a business combination in which one of the merging companies (the main one) continues to operate, while the others lose their independence and cease to exist as legal entities. All rights and obligations of the affiliated companies pass to the main company. Acquisition - a transaction made in order to establish control over an economic company and carried out by acquiring more than 30% of the authorized capital (stocks, shares, etc.) of the acquired company. At the same time, the legal independence of society remains.

 

 

The year ended 2015 was the world record for mergers and acquisitions (M&A). Globally, M&A activity reached $ 4.9 tn, exceeding the 2007 record high of $ 4.6 tn, according to Dealogic.

Representatives of pharmaceuticals and consumer goods manufacturers, as well as oil and gas and telecommunications companies took part in reaching a record high.