Mergers

Merger by acquisition One or more companies are wound up without going into liquidation • They transfer to another company (the ”acquiring company”) all their assets and all their liabilities ◦ In exchange of shares in the acquiring company ▪ and a cash payment (if any) not exceeding 10% of the nominal value of the shares to issued. • According to Art. 30 MS may however exceed the 10% limit. ▪ To the shareholders of the company/companies being acquired. In practice, a capital increase will very often be made in the acquiring company • parallel to the merger taking a place, • – this in order to provide the shareholders of the company/companies being acquired with shares in the acquiring company.