The document defines amalgamation as the combination of two or more companies into a new entity. During amalgamation, companies willingly come together to cooperate and diversify their businesses. After amalgamation, the original companies dissolve and lose their individual existence, instead existing jointly as a new company with a unique name, logo, and identity. Examples provided are Maruti Suzuki and TATAAIG Life Insurance. Amalgamation can provide benefits like increased capital, reduced costs, larger scale production, and avoiding competition. However, it can also result in monopoly and loss of original company goodwill and identity. There are two types of amalgamation - amalgamation in the nature of merger and amalgamation in the nature of purchase.