Merger Event

This Issue in United States

Merger Event

Concept of Merger Event in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The term used in a credit derivative (i.e. an instrument that transfers risk from one party to the other) when there is a transfer of ownership of 100% of shares of a company to another individual/entity. Acceptance of an offer is sufficient to be considered a merger event as actual completion of the merger may take months or years.

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See Also

• Derivatives Contract