What is amalgamation?

What is amalgamation?

• A. A sale of one company's assets to another.
• B. It involves the bringing together of two or more undertakings of separate companies within a single company.
• C. The division of a company into smaller parts.
• D. A temporary halt to trading.

Answer: (B)

Amalgamation means bringing together two or more undertakings of separate companies within a single company. In practice, this is when distinct business activities are combined under one corporate entity, so they operate as one unit with shared management, resources, and liabilities. This is different from selling assets to another company, which would transfer assets out rather than unify operations; it’s different from a demerger, where a company splits into multiple parts; and it isn’t about a temporary halt to trading, which is simply a pause in activity rather than a reorganization.

Amalgamation means bringing together two or more undertakings of separate companies within a single company. In practice, this is when distinct business activities are combined under one corporate entity, so they operate as one unit with shared management, resources, and liabilities. This is different from selling assets to another company, which would transfer assets out rather than unify operations; it’s different from a demerger, where a company splits into multiple parts; and it isn’t about a temporary halt to trading, which is simply a pause in activity rather than a reorganization.