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Merger or amalgamation may take two forms:

Merger through absorption. Merger through consolidation

Merger through absorption


An absorption is a combination of two or more companies into an existing company. All companies except one lose their identity in a merger through absorption. example : Reliance Petroleum by Reliance industries.

Merger through consolidation


A consolidation is a combination of two or more companies into a new company. In a narrow sense, the terms, amalgamation and consolidation are sometimes used interchangeably. An example of consolidation is the merger or amalgamation of Hindustan Computers Ltd., Hindustan Instruments Ltd. and Indian Reprographics Ltd.

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