The term amalgamation has generally fallen out of popular use in the United States, being replaced with terms like merger or consolidation, with which it can be synonymous. But it is still commonly used in certain countries, such as India. Amalgamations are one of several ways that existing companies can join forces, in this case creating an entirely new company. While the term is rarely heard in the U.S. today, the practice continues both there and elsewhere around the world. Amalgamation can also refer to the combining of other types of organizations into a single one, such as nonprofit groups and entities in the public sector, including government agencies and municipalities.
- These examples are programmatically compiled from various online sources to illustrate current usage of the word ‘amalgam.’ Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors.
- In India, for example, that authority resides in the High Court and Securities and Exchange Board of India (SEBI).
- An amalgamation is the combination of two or more companies into an entirely new entity.
- But it is still commonly used in certain countries, such as India.
- Amalgamation may also increase shareholder value, reduce risk through diversification, improve managerial effectiveness, and help the new company achieve financial results and levels of growth that would have been more difficult for its predecessor companies.
Instead, a completely new entity, with the combined assets and liabilities of the former companies, is born. Acculturation is one of several forms of culture contact, and has a couple of closely related terms, including assimilation and amalgamation. In Canada, amalgamations must be approved by Corporations Canada and the relevant provincial and territorial governments.
Scrabble Words Without Any Vowels
Canada defines amalgamation as “when two or more corporations, known as predecessor corporations, combine their businesses to form a new successor corporation.” While amalgamations tend to involve voluntary agreements between the different parties, acquisitions can occur without the assent of the acquired company, in what’s known as a hostile takeover. The terms of an amalgamation are finalized by the board of directors of each company involved. In India, for example, that authority resides in the High Court and Securities and Exchange Board of India (SEBI).
Dictionary Entries Near amalgam
These examples are programmatically compiled from various online sources to illustrate current usage of the word ‘amalgamate.’ Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. These examples are programmatically compiled from various online sources to illustrate current usage of the word ‘amalgamation.’ Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Indian tax law defines “amalgamation” somewhat broadly as “the merger of one or more companies with another company or the merger of two or more companies to form one company.” It refers to the merging companies as “the amalgamating company or companies,” while the company they merge with or which is newly formed as a result of the merger is “the amalgamated company.” These examples are programmatically compiled from various online sources to illustrate current usage of the word ‘amalgam.’ Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. An amalgamation is the combination of two or more companies into an entirely new entity. Amalgamations are distinct from acquisitions in that none of the companies involved in the transaction survives as a legal entity.
The noun amalgam derives, by way of Middle French, from Medieval Latin amalgama. It too can be used either technically, implying the creation of an alloy of mercury, or more generally for the formation of any compound or combined entity. As mentioned, in a typical amalgamation, two or more companies agree to combine their assets and liabilities and form an entirely new company. In an acquisition, by contrast, one company purchases another (usually by buying up enough of its stock) and takes on its assets and liabilities, with no new company being created as a result.
How Amalgamations Work
Once approved, the new company officially becomes a legal entity and can issue shares of stock in its own name. Amalgamations typically happen between two (or more) companies that are engaged in the same line of business or that share some similarity in their operations. https://1investing.in/ Usually, the process involves a larger entity, called a “transferee” company, absorbing one or more smaller “transferor” companies before the creation of the new entity. Merge suggests a combining in which one or more elements are lost in the whole.
Other words from amalgamate
Amalgamate implies the forming of a close union without complete loss of individual identities. Mix, mingle, commingle, blend, merge, coalesce, amalgamate, fuse mean to combine into a more or less uniform whole. Add amalgamation to one of your lists below, or create a new one. In April 2022, the telecom giant AT&T and the television entertainment company Discovery, Inc. announced that they had finalized a deal to combine AT&T’s WarnerMedia business unit with Discovery. Discovery Inc. began trading on the Nasdaq stock exchange under the symbol WBD.
Examples of amalgamation in a Sentence
In accounting, the amalgamation reserve is the amount of cash left over at the new entity after the amalgamation is completed. In general, the objective of an amalgamation is to establish a unique entity capable of more effectively competing in the marketplace, while also benefiting from greater economies of scale. In that respect it is not all that different from an acquisition and similar strategies to aid corporate growth. In accounting, amalgamations amalgamation meaning may also be referred to as consolidations. Amalgamation is a way to acquire cash resources, reach a broader customer base, eliminate competition, save on taxes, and/or improve economies of scale. Amalgamation may also increase shareholder value, reduce risk through diversification, improve managerial effectiveness, and help the new company achieve financial results and levels of growth that would have been more difficult for its predecessor companies.