In a true merger with ‘pooling of interests’: (a) The entire assets and property of the merging company are transferred to the merged company and based on the valuation of both the companies, the share swap ratio is fixed

In a true merger with ‘pooling of interests’:

(a) The entire assets and property of the merging company are transferred to the merged company and based on the valuation of both the companies, the share swap ratio is fixed.

(b) The assets and liabilities of the merging company to be transferred are finalised and valued to

arrive at the purchase consideration which is paid in the form of shares of the transferee company

based on the share swap ratio.

(c) The purchase consideration is paid by the transferee company in the form of shares or cash or both and the transferor company is dissolved.

(d) The assets and liabilities may or may not be transferred in full by the transferee company based on the valuation of the transferor company.

(e) Based on the mutual valuation of the assets of both the companies, the share swap ratio is fixed.