FUSION. In business and finance, fusion is a term signify ing a complete combination of several concerns into one. Fusion is accomplished by two methods, by merger and by consolida tion. When the fusion of two or more business organizations takes place by merger one of them absorbs the other or others, maintaining its own corporate existence under its own charter (amended if necessary), and taking either its own name or that of one of the concerns absorbed. All of the concerns to a merger which are absorbed into the remaining one give up their charters and corporate existence.
When fusion by consolidation takes place two or more com panies organize a new company, transfer to it all of their assets, and then dissolve their own respective organizations. In popular usage the terms fusion, merger, consolidation, and several others are often confused and used incorrectly. Fusion is the general term embracing both mergers and consolidations. If companies A, B and C fuse by merger, two of them, let us say B and C, will go out of existence and all of their assets will go to build up the enlarged company A. If, however, companies X, Y and Z are to be consolidated, all of them will go out of existence and their assets will go to form the new company under a new charter.
For Fusion in Physics see HEAT.