Forward Triangular Merger


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Forward Triangular Merger

A merger where an independent company combines with the subsidiary of another country. For example, a forward triangular merger may occur when Company A merges with Subsidiary B of Company C. In this forward triangular merger, Company A (or at least its resources and assets) becomes a subsidiary of Company C.
References in periodicals archive ?
368-2(b) (1)(iii), Example (4), will allow a triangular consolidation or amalgamation to qualify if the transaction meets all the tests (including the "substantially all" test) under the reorganization rules applicable to forward triangular mergers under Sec: 368(a)(2)(D).
This will have no effect if a new subsidiary is the transferee in a forward triangular merger, but could be a problem in a reverse triangular merger or if an existing subsidiary with E&P is used in the forward triangular merger.
It is the intent of the parties to negotiate a mutually satisfactory merger transaction in the form of a forward triangular merger, reverse triangular merger or other form of reverse merger.
CORRECTION (ran 3/30/02): The Skillern family's Kendall Automotive Group and Steve Romania's Romania auto dealerships have merged in a legal procedure known as a forward triangular merger.
In the example above, the transaction could not have qualified as a C reorganization or a forward triangular merger (by reason of Sec.