Merger and acquisition
A transaction through which two companies merge or one acquires the other. A merger dissolves one entity and transfers its entire estate to the other. An acquisition preserves both entities in a parent-subsidiary relationship.
In practice
In France, a simplified merger between a parent holding 100 percent of its subsidiary can be completed without an independent valuation or general meeting approval, within a two-month window. This mechanism is used to absorb an operational subsidiary into the holding to simplify the group structure. Pre-merger due diligence focuses on tax compliance of both entities and change-of-control provisions in key client or supplier contracts.