M & A (Merger & Acquisition)
Merger is a means to grow and strengthen businesses which enhances an effectiveness in trade competition, technology transfer, financial restructuring or saving cost in business operations whereby merger might occur between trading competitors or other businesses which are not related to the original businesses.
There are many types of merger but the most popular ones in Thailand are merger and acquisition.
A merger occurs when one business corporation merges with another business corporation (Merged Corporation) into a single enterprise whereby all the assets and liabilities of one company are transferred to the single enterprise. In general, the corporation that merges the other is the one that has a more significant role in the economy than the other corporation.
An acquisition refers to one business corporation taking control of another business corporation entirely or partly. Even though the business corporation is taken control entirely or partly, such business corporation might still have power to run its own business. However, the acquisition might also mean purchasing the other business corporation’s stock which gives its holder voting privileges, acquiring the other business corporation’s assets (Asset Acquisition), or taking over the other business corporation (Take Over).