Business Terms and Jargon Explained

What is Takeover

This is where a company takes over another company by the acquisition of share or agreements or ownership with companies that have shares. When the company has a majority interest or owns all the share in another company, the controlled company then becomes a subsidiary company of the controlling company. It is now part of the controlling company and in the accounts there will be consolidated accounts.

Both companies still exist and are separate companies. The controlling company can at will combine the companies if they so wish. The can be a separately newly formed company or one merges with the other.

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Term created / updated 2006-05-10 19:22:50

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