07 April 2012
The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock.
"A consolidation is the union of two or more corporations into one corporate body, after which the constituent corporations cease to exist.
"A merger is the absorption of one corporation into another....
"[A]malgamation is ... used to designate a consolidation or merger."
For example, Ontario's Business Corporations Act, at section 174, provides that "2 or more corporations ... may amalgamate and continue as one corporation" (RSO 1990 Chapter B16).
Amalgamation is also used in the sense of amalgamating of two or more municipalities to effect cost-savings in the provision of otherwise duplicative municipal services. In this context, Ian MacFee Rogers wrote:
"An amalgamation has been defined as a fusion of two or more legal entities into a continued new union with the obligations, by-laws and assets of the former municipalities."
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