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It is two companies coming together to form one with a new board that comprises of directors from both companies in accodance with the memorundum of ubderstanding and articles of association agreed upon by both parties before a commisioner of oaths.
A merger usually involves combining two companies into a single larger company. The combination of the two companies involves a transfer of ownership, either through a stock swap or a cash payment between the two companies. In practice, both companies surrender their stock and issue new stock as a new company.
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