Introduction
A merger or an acquisition transaction (M&A) can be carried
out in a variety of ways, including, inter alia,
through merger (ordinary or reverse), a share purchase agreement
(SPA), restructuring under the court's supervision (pursuant
to section 351 of the Companies Law) or by a (full/partial) tender
offer.
The methods specified above are the most common and recognized ones
through which a purchasing company carries out a merger or acquires
shares in a target company (which is being bought), the common
denominator being implementation of the transaction through the
target company's shares.
Notwithstanding the foregoing, there is a less familiar way to
merge/join two companies, which is by purchasing the assets or
activity of the target company (in whole or in part), in such a way
that the corporate ownership of the target company's shares
remains unchanged, and the subject of the transaction is, as
aforesaid, the company's assets or activity.
