Which statement most accurately distinguishes a merger from an acquisition?
-
A
In a merger, one company purchases only the assets of another; in an acquisition, both companies combine as equals
-
B
In a merger, two companies combine to form a new or surviving entity; in an acquisition, one company purchases and absorbs another
-
C
Mergers are always friendly transactions, while acquisitions are always hostile
-
D
Mergers require antitrust approval; acquisitions of any size do not