Abstract

The Combination (M&A) is a policy of business expansion and corporate restructuring. Such combination can change the entire business structure of an industry. The phrase ‘combination’ includes the term ‘merger and acquisition’. The merger and acquisition both can be interpreted individually as in a merger when two companies combine each other and form a new entity and acquisition is a control which is in the hand of acquiring company who can control more than 50% of share of the target company. According to Hampton (1989) claimed that "a merger is a combination of two or more businesses in which only one of the corporations survives". The symbolic expression of the definition of merger appears A+B= C as per Singh (1971) whereas A+B=C or B or A as explained by Hampton (1989). There is another view to describe merger i.e, when two companies in a same size join together to form a new entity and move forward, this is called ‘merger of equals’. For example two company namely- Daimler-Benz and Chrysler ceased to exist when they merged and the Daimler- Chrysler was created.

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