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In a joint venture, can one company eventual acquire the other?
For example, if Company A has a joint venture with company B and the venture is very successful. In a few years will company A be able to acquire company B and then the joint venture will be more of a wholly owned subsidiary??
I think I have the concepts confused - so thanks in advance for the help!
1 Answer
- 1 decade agoFavorite Answer
one company can absorb another company.
one way to look at it is like this (to make it more understandable)
when a man (company A) and woman (company B) decide to live together (merger) they are still separate entities. when they decide to get married Company A sues Company B and absorbs Company B's assets and they take on a common name.
of course this example is only to clarify, but that's how it works with the Company A & B
hope this helps
Source(s): I am not a lawyer, just avg. joe who likes to study the law. this is all based on how i have interpreted the law for my own self, not meant to be legal advice
