Mergers and Acquisition Law deals with legislation that regulates the joining of two separate companies for which the ultimate objective is the creation of a bigger business entity.
A merger is a process by which two companies join and one new company continues to exist. Acquisitions involve a process by which one company acquires the assets of another company. The Federal Trade Commission ensures that these transactions are compliant with fair competition and antitrust laws. Mergers can be vertical, horizontal, congeneric and conglomerate; whereas there exists two basic types of acquisitions: hostile and friendly.