What Is a Reverse Triangular Merger?

Anti-triangular merger means that after the merger of the subsidiary of the buyer company and the target company, the target company also becomes a subsidiary of the buyer company, and the independent legal form of the original subsidiary will no longer exist. Only this form protects the independent legal form of the target company.

Anti-triangular merger

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Anti-triangular merger means that after the merger of the subsidiary of the buyer company and the target company, the target company also becomes a subsidiary of the buyer company, and the independent legal form of the original subsidiary will no longer exist. Only this form protects the independent legal form of the target company.
Chinese name
Anti-triangular merger
Foreign name
Reverse triangular merger
Content
Independent legal form of the target company
Features
This type of merger is more complicated
This type of merger is more complicated. First, the acquiring company establishes a wholly-owned subsidiary, and then the subsidiary is merged into the acquired company. The acquiring company exchanges the shares of the acquired company for the newly issued shares of the acquired company with the shares of the subsidiaries it holds, while the shareholders of the acquired company obtain cash or the shares of the acquiring company in exchange for the shares of the acquired company. [1]
It should be noted that in the traditional merger transaction, all shareholders of the disappearing company usually obtain the stock of the surviving company, but the consideration in today's statutory merger can be cash or other property other than stock.

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