Amalgamation Law and Legal Definition
In generic sense the term Amalgamation denotes the blending of two or more things into one single unit. The term is generally used to refer to the merger or acquisition (M&A) of two or more corporations into one large corporation. Mergers and acquisitions (M&As) is a phrase used to describe the buying and selling of corporations. In an acquisition one party buys another by acquiring all of its assets. The acquired entity ceases to exist as a corporate body, but the buyer sometimes retains the name of the acquired company, and may use it as its own name. In a merger a new entity is created from the assets of two companies and new stock is issued. Mergers are more common when the parties have similar size and power. A merger suggests mutuality. M&A activity involves both privately held and publicly traded companies. For the merging of schools or regiments the term amalgamation is used.
