AMALGAMATION: Amalgamation is defined as the combination of one or more companies into a new entity. It includes:
Two or more companies join to form a new company
Absorption or blending of one by the other
Thereby, amalgamation includes absorption. However, one should remember that Amalgamation as its name suggests, is nothing but two companies becoming one. On the other hand, Absorption is the process in which the one powerful company takes control over the weaker company.
MERGER is an agreement that unites two existing companies into one new company. There are several types of mergers and also several reasons why companies complete mergers.
