What is the difference between amalgamation and absorption?

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Sandip Agarwal

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Amalgamation is the process of two or more companies joining together to form a new one. Think of Maruti India and Suzuki Japan amalgamating to form Maruti Suzuki. Absorption is when one company acquires another company . No new company is formed. Think of Vodafone acquiring Hutch.
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JU-IITKGP & 10+ years experienced for boards, JEE,NEET,OLYMPIAD & 5-12

Amalgamation is the process of two or more companies joining together to form a new one. Think of Maruti India and Suzuki Japan amalgamating to form Maruti Suzuki. Absorption is when one company acquires another company . No new company is formed. Think of Vodafone acquiring Hutch.
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amalgamation is cosolidation of one or more entity to form form new entity while absorption is only merger of two compay no new company is created. amalgmation includes absorption
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Tutor with 4 yrs of experience in accounting and economics

Amalgamation is the process whereby two or more companies joined together to form a new company whereas when one company amalgates in to another company is said to be absorption.
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Amalgamantion also called erger is the joining together of two organizations/ companies. It is usually equaly footing. Both organizations togeter form a new entity. For example recently Vodafone India and Idea Cellular merged to form Vodafone Idea. Absorption on the otherhand is complete takeover of...
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Amalgamantion also called erger is the joining together of two organizations/ companies. It is usually equaly footing. Both organizations togeter form a new entity. For example recently Vodafone India and Idea Cellular merged to form Vodafone Idea. Absorption on the otherhand is complete takeover of one companyby another. The company taking over, remains and retains its identity while the company taken overno longer remains an entity. read less
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