ACQUISITION: Acquisition is an act of one company taking over or acquiring another company’s controlling interest. This can be done either by buying assets of that company or buying shares or stocks of the company. If the acquirer purchases more than 50% of the company’s stocks, shares or other assets, they gain the power of making decisions regarding the company without the involvement or permission off the other shareholders.
TAKEOVER occurs when one company makes a successful bid to assume control of or acquire another. Takeovers can be done by purchasing a majority stake in the target firm. Takeovers are also commonly done through the merger and acquisition process. The words “acquisition” and “takeover” mean almost the same thing, they have different nuances on Wall Street.
