Mergers are a major part of growing a business into a new overseas market. In Japan there are two types of mergers: Absorption type mergers and Consolidation type mergers.
Absorption type mergers happen when one company absorbs another, taking on all of its rights and responsibilities. The end result of the merger is that one company disappears and the other survives.
Consolidation type mergers involve two companies that combine to form a new company that carries all of the rights and responsibilities of both companies prior to the merger. Both companies that merged disappear and an entirely new company is left in their place.
If you would like more information about company mergers please contact our office for a legal consultation.