Corporate mergers

What this is about

A merger is a legal institution that involves the union of two or more companies and allows the economic potential of the participating companies to be increased, strengthening their presence in the market and enabling business costs to be lowered. The corporate merger procedure consists of a preparatory phase and an implementation phase. The former entails the preparation of a merger plan by the boards of directors of each participating company, in which the essential aspects of the merger are identified (including the exchange ratio between shares and corporate holdings and any cash adjustment). The implementation phase makes the merger effective.