A merger refers to the combination of two or more companies of roughly equal size into one new entity, with the companies ceasing to exist separately. There are three main types of mergers: horizontal mergers between companies in the same industry, vertical mergers between companies in different stages of production of the same good, and conglomerate mergers between companies in unrelated industries. An amalgamation is when two or more existing companies blend together into a new or existing company, with the shareholders of the original companies becoming shareholders of the new company. An acquisition differs in that it involves one company gaining ownership of another but the acquired company remains a separate legal entity, even if now under new control.

1. Meaning of Merger
 A merger refers to a combination of two or more
companies, usually of not greatly disparate size, into
one company.
 A merger involves the mutual decision of two
companies to combine and become one entity;
it can be seen as a decision made by two "equals".
 Merger refers to a situation when two or more existing
firms combine together and
form a new entity.
 Merger is a marriage between two companies of
roughly same size. It is thus a combination of two or
more companies in which one company survives n its
own name and the other ceases to exist as a legal
entity.

2. Types of Merger
HORIZONTAL MERGER-
 Horizontal mergers take place where the two
merging companies both produce similar
product in the same industry.
VERTICAL MERGER-
 Vertical mergers occur when two firms, each
working at different stages in the production
of the same good, combine.
CONGLOMERATE MERGER-
 Conglomerate mergers take place when the
two firms operate in different industries.

3. Meaning of Amalgamation
 Amalgamation signifies the transfers of all are some
part of assets and liabilities of one or more than one
existing company or two or more companies to a
new company.
 According to Halsbury’s law of England
amalgamation is the blending of two or more existing
companies into one undertaking, the shareholder of
each blending companies becoming substantially
the shareholders of company which will carry on
blended undertaking. There may be amalgamation
by transfer of one or more undertaking to a new
company or transfer of one or more undertaking to
an existing company.

4. Meaning of Acquisition
 Acquisition refers to the acquiring of ownership right in the property and asset
 without any combination of companies. Thus in acquisition two or more
companies
 may remain independent, separate legal entity, but there may be change in
control of companies. Acquisition results when one company purchase the
controlling interest in the share capital of another existing company in any of
the following ways:
 a)controlling interest in the other company. By entering into an agreement
with a person
 or persons holding
 b)By subscribing new shares being issued by the other company.
 c)By purchasing shares of the other company at a stock exchange, and
 d)By making an offer to buy the shares of other company, to the existing
shareholders of
 that company.