Meaning of “reverse merger” in the English Dictionary

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"reverse merger" in Business English

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reverse mergernoun [ C ]

uk us

FINANCE, STOCK MARKET a situation in which a private company (= one whose shares are not traded on a stock market) buys most of the shares in a public company so that it controls that company and becomes a public company itself. A reverse merger allows a private company to get capital on a stock market without an initial public offering (= making shares available for the first time):

(Definition of “reverse merger” from the Cambridge Business English Dictionary © Cambridge University Press)