Statutory merger

Statutory merger

A merger in which one corporation remains as a legal entity, instead of a new legal entity being formed.

Statutory Merger

A merger between two or more companies in which one company continues to legally exist, while all others cease to exist. That is, if Company A and Company B merge, Company A will continue to exist under its own name, while Company B will begin to operate under the name, "Company A." A statutory merger is essentially the same as an acquisition, though an acquisition carries a slight connotation of a hostile takeover, while a statutory merger does not. See also: Statutory consolidation.
References in periodicals archive ?
Kinnevik AB (STO:KINVB), an industry focused investment company, announced on Wednesday that it supports the proposed statutory merger between telecommunications provider Tele2 AB (STO:TEL2B) and communications company Com Hem Holding AB (STO:COMH).
It will be implemented by means of a statutory merger between SRL and Iluka Newco under section 170 of the BVI Business Companies Act.
So what exactly is a statutory merger and why is it important?
Several courts interpreted the 1939 Code as providing that NOLs generated by an entity that ceased to exist as a result of a statutory merger were automatically lost; i.
In statutory merger, there is only one transaction, i.
It is anticipated that the Proposed Acquisition will be effected through a statutory merger under BVI law pursuant to which Forte Energy shall issue and allot to Leominex shareholders a total of 95 per cent of the Company s issued share capital (equivalent to approximately 860 million ordinary shares in the capital of Forte Energy at the date of this announcement), as consideration for 100 per cent of the issued share capital of Leominex.
The statutory merger structure mitigates against, and in some cases eliminates, execution risks in a number of important areas that were associated with previously used structures.
The statutory merger of council education services under joint management could also be a solution, he said.
18) In a triangular merger, the acquiring corporation sets up a wholly owned subsidiary, usually funds the subsidiary with stock of the parent, and then causes the subsidiary to merge with the target under a regular statutory merger.
With everything that is happening, and the changes taking place, it seems inappropriate to continue to look at a statutory merger.
As a result of the statutory merger, announced on Friday, Comstar will be subsumed into MTS and will cease to exist as a separate legal entity.
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