What do you understand by amalgamation of companies?
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Amalgamation is basically the merger of two or more companies into one single company. Amalgamations are often done when companies with similar workings are able to save their costs by combining their operations .
Companies also engage in amalgamation when they are wanting to enter into new markets so mergers and acquisitions are a way to achieve this. There are many reasons as to why the companies want to perform amalgamations. These include the following:
-Cost savings achieved through bargaining power with suppliers -and clients
-Easy access to new markets
-Easily accessible technologies
-Cheaper financing for a bigger company
-Elimination of competition
-Access to new clients
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