What happens when a listed company merges with another company?
What happens to the shares which the investors hold?
Hi JB,
Theoretically, when Company A merges with B, then value of B becomes value of A+B. There are many ways evaluate the mergers. Depending on the payment made by the buyer for the seller, the value of the buyer increases or reduces after the merger.
Major area of interest will be how the assets, the liabilities and free cash flow changes after the merger. Hope this helps.
Happy Trading.