merger agreement
Học thuậtThân thiện
Definition
Noun: A legally binding contract that outlines the terms, conditions, and procedures for combining two or more separate companies into a single entity. It governs the entire merger process, detailing aspects such as the exchange of shares, valuation, management structure of the new company, and obligations of all parties involved.
Usage
A "merger agreement" is a formal document used in corporate finance and law. It is the central contract that makes a merger official and legally enforceable. - It is typically negotiated between the boards of directors of the companies involved. - It must be approved by shareholders and often regulatory bodies. - The agreement specifies what will happen if the deal is not completed (e.g., breakup fees).
Examples
Advanced Usage
- "to enter into a merger agreement": The formal act of signing and committing to the contract.
- The two tech giants entered into a merger agreement to consolidate their market position.
- "definitive merger agreement": The final, fully negotiated version of the contract, as opposed to preliminary letters of intent.
- The companies announced they have executed a definitive merger agreement.
Variants and Related Words
- Merger (n): The general act or process of combining two companies.
- Acquisition agreement (n): A contract for one company purchasing another; related but distinct, as a merger often implies a more mutual combination.
- Consolidation (n): A broader term for the combining of businesses or assets.
Synonyms
- Amalgamation agreement
- Combination contract
- Merger contract
Related Phrases
- Merger plan: The broader strategic plan, of which the agreement is a part.
- Merger clause: A specific provision within a merger agreement, often stating that the written contract represents the entire understanding between parties.
Noun
- contract governing the merger of two or more companies