Beolvadás

Beolvadás is a Hungarian term that translates to "merger" in English, specifically referring to a type of company acquisition where one company absorbs another. In this scenario, the acquiring company, often referred to as the "beolvasztó" (merging company), takes over all assets, liabilities, and operations of the target company, known as the "beolvadó" (merged company). Following the merger, the merged company ceases to exist as an independent legal entity. Its shareholders typically receive shares in the acquiring company as compensation. This process is a common form of corporate restructuring aimed at achieving economies of scale, expanding market share, or acquiring new technologies or expertise. The legal framework for beolvadás in Hungary is governed by company law, which outlines the procedures, shareholder approvals, and reporting requirements necessary for its completion. It is a complex legal and financial transaction that requires careful planning and execution to ensure a smooth transition and maximize the benefits for all parties involved.