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).
In Example 1 above, this transaction could not have qualified as a C reorganization, or for that matter as a forward triangular merger (by reason of Sec.
72-405, provided that a forward triangular merger of an acquiring corporation's subsidiary followed by a liquidation of the subsidiary qualified as a type C reorganization.