Reverse Triangular Merger
When the subsidiary of the acquiring corporation merges with the target firm. In this case, the subsidiary's equity merges with the target firm's stock. As a result of the merger, the target would become a wholly-owned subsidiary of the acquirer and shareholders of the target would get shares of the acquirer. Investopedia Says:
This form of acquisition is often used for regulatory reasons. Related Terms:
Acquisition
Forward Triangular Merger
Merger
Target Firm |