Merge and Acquisition

 When two companies merge together, they either coexist and are turned into one company, or the smaller company is absorbed into the bigger one. There are many different types of merging strategies and defenses used by companies. 

Merger: The company that will be acquired after approval by the board of directors of the two companies at the general shareholders' meeting will not survive.

Absorption-type Merger: A merger in which two or more companies dissolve the remaining merged companies with one company as a subsidiary, and the assets, businesses, and liabilities are comprehensively inherited by the surviving company

Consolidation-type Merger: A merger in which two or more companies form a new company by dissolving an existing company, and the newly established company acquires assets, businesses, and liabilities of the dissolved company

Take-over bid: The act of selecting a company subject to M&A and openly buying the company's stock, and the forces that attempt M&A will buy the stocks traded on the stock market at a higher price than the market price for a certain period

Greenmail: Corporate hunters threaten the management of a target company after purchasing a large amount of shares

White Knight: Friendly forces drawn from outside by companies subject to hostile M&A to defend management rights

Poison pill: A strategy that deliberately reduces the profitability of M&A target companies. A plan that breaks the will to take control of management by informing the other party that it could lose a lot of money if it takes over

Golden Egg: A method of separating the key businesses (golden eggs) targeted by the attacker, defense techniques that discourage M&A motivation, methods commonly used in the United States, and critical assets and technologies that cause M&A

Pac-man: A strategy named after the popular video game, it involves a reverse acquisition re-intention. This tactic aims to confuse the attacker by purchasing the shares of the M&A entity when the M&A entity announces its intention to buy the shares of the M&A entity.