Under Merger, two entities are unified as one single entity whereas acquisition refers to the takeover of one entity by another. In India, in a legal sense, a Merger is known as “ Amalgamation”:

Following steps are involved while finalizing an M&A deal in India: 

Scrutinize the Memorandum of Association of the company: This is done to check whether the company is empowered to conduct a merger or not.

Update SEBI about the deal: Illuminate SEBI regarding the proposed deal and send all the relevant documents, notices, and resolutions to the stock exchange within a stipulated time.

Drafting a merger proposal: A draft of the proposal is prepared which needs to be approved by the Board of directors of both companies.

Filing an application to the High court: Once the draft has been approved by the Board of directors, applications for the same need to be filed in Hon’ble High courts of the individual states where the headquarters of the organizations are located.

Sending notices to Shareholders and creditors: A notice needs to be dispatched to the shareholders and creditors for a meeting.

Submission to ROC: The genuine confirmed copy/copies of the High Court must be documented with the ROC within the limited time period as indicated by the High Court. 

After the completion of the above process, the assets and the liabilities of both entities can be merged.