I am curious about the difference between corporate acquisition and merger.

Corporate acquisition and merger differ clearly in purpose, structure, and legal effect.

First, a corporate acquisition (Acquisition) is a method by which one company acquires the shares or assets of another company, integrating the assets and business of the acquired company while maintaining the existing corporate structure.

In this case, the acquirer secures management and decision making authority over the target company, and the corporate tax burden may increase due to the added assets and business.

On the other hand, a corporate merger (Merger) is a process in which two or more companies are combined into one new corporation.

The existing companies legally cease to exist, a new corporation is formed, and authority is equally integrated during the merger process.

In addition, if losses arising during the merger process are realized, the corporate tax burden may be reduced.

In summary, you may understand a corporate acquisition as centered on the concept of 'buying a company,' and a corporate merger as centered on the concept of 'combining companies to create a new corporation.'

For details related to corporate acquisition and merger, please confirm through a consultation with an attorney handling corporate mergers and acquisitions.