Takeover definition
Takeover
A takeover refers to a company or individual assuming control of a company by buying a majority share of its stock. They typically occur when a larger company wants to assume control over a smaller one in the form of a merger or acquisition.
Takeovers can be voluntary decisions by both companies, or the larger company may commit the takeover without the knowledge or agreement of the smaller company.
Merger vs acquisition
Mergers differ from acquisitions in how they are carried out. Mergers are mutual agreements between two companies in which they combine to form a new organization. Acquisitions are carried out by one company absorbing another, keeping the brand identity of the larger corporation. While both are forms of corporate takeover, acquisitions are more forceful than mergers.