• In the above example, Company 'A' and Company 'B' are

operating (existing) in the market. Company 'A' is an

acquiring company, and Company 'B' is getting acquired by
Company 'A'. In other words, Company 'B' gets merged
with Company 'A'.

• In this example of merger, Company 'A' will purchase the

majority of equity shares (ownership shares) of Company
'B'. Company 'A' will take over the assets and liabilities of
the Company 'B'. The shareholders of the Company 'B' will
be given the shares of Company 'A'. The acquiring Company
'A' will continue to operate (function) by its erstwhile
(former) name.