Whenever two or more business units engaged in the same line of business or in different related processes or stages of the same line of business unite or associate together with a view to carry on their activities and shape their policies on common and co-ordinated basis for mutual benefit, they are said to form a business combination.

In the words of Haney, “To combine is simply to become one of the parts of whole, and a combination is merely a union of persons to make a whole or group for the prosecution of some common purpose.” A business combination is “a method of economic organization by which a common control of greater or less completeness is exercised over a number of firms which either have operated hitherto or could operate independently. This control may be either temporary or permanent for all or only for some purposes. “Business combination may take numerous forms varying from the unwritten understanding amongst a small group of local dealers to highly integrated amalgamation or fusion of large business houses.

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