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Within the world of companics an amalgamation refers to the coming together by arrangement of two or more individually registered companies for the purpose of maximizing potential trading opportunities to the mutual benefit of the companies concerned. This is the ideal form of true amalgamation but the term is also used of takeovers by one company of another, often for the principal benefit of the first, and again for shotgun company ‘marriages’ brought about by outside interests with the ostensible purpose of benefiting the community at large. The State has, in the past, had occasion to make aid to ailing companies conditional on their agreeing to be amalgamated into one unit. The term ‘merger’ is commonly used as an alternative to amalgamation.
Reference: The Penguin Business Dictionary, 3rd edt.
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