Question

If merger of Hindustan Computers Ltd, Hindustan Instruments Ltd, Indian Software Company Ltd. and Indian Reprographics Ltd into an entirely new company called HCL Ltd. Identify the forms of merger and explain the same.

Answer 1

Merger through Consolidation/ Amalgamation2. Meaning: A consolidation is a combination of two or more companies into a ‘new company’. In this form of merger all companies are legally dissolved and a new entity is created. Here the acquired company transfers its assets liabilities and shares to the acquiring company for cash or exchange of shares.