Differentiate Mergers from consolidation of corporations in the Philippines.
Mergers and consolidation of the corporation in the Philippines are two different processes whereas mergers refer to
two companies that opt to combine to form a single entity; this activity often involves one company purchasing another
or both companies agreeing to be merged. On the other hand, Consolidation in a corporation refers to the two or more
companies that combine to form a completely new company and the original company/companies cease to exist.
Furthermore, mergers and consolidation are distinct in terms of entity status, legal identity, and operation outcome.
Under the (1) Entity status of merger, the entity survives while others are absorbed and cease to exist while in the
consolidation aspect, all original companies/corporations are dissolved and the new entity is being formed; (2) Legal
identity, under merger, it retains the legal identity of a particular corporation while in consolidation in forms a new
entity; (3) Operation outcome, mergers may obtain an outcome of an enlarged- surviving corporation while in
consolidation, it forms a new corporation and hence replaces the original business of the said corporation.
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