Okuzeka
Contract & Commercial Law vocabulary · Mergers & Acquisitions

Takeover

Meaning in contract & commercial law, with examples

/ˈteɪkəʊvə/nounCommon term

In contract & commercial law, takeover means: The act of gaining control of a company, usually a listed one, by buying a majority of its shares, sometimes against the wishes of its management.

In Turkish: devralma, şirketin kontrolünün ele geçirilmesi

How it is used

A takeover can be 'friendly' (recommended by the target's board) or 'hostile'. Takeovers of listed companies follow strict rules, such as the UK Takeover Code or the Turkish Capital Markets Board's rules on mandatory tender offers. The phrasal verb is 'take over'.

Example sentences

  1. The board rejected the takeover bid as too low.

  2. After the takeover, the new owners replaced most of the management team.

Common collocations

  • takeover bid
  • hostile takeover
  • friendly takeover
  • launch a takeover
  • takeover offer
  • acquisitionThe purchase of a company, part of a company or a business, usually by buying its shares or its assets.
  • mergerThe combination of two or more companies into one, either by one company absorbing the others or by forming a completely new company.
  • target companyThe company that a buyer plans to acquire or invest in during a merger, acquisition or takeover.
  • shareholderA person or company that owns shares in a company and therefore owns part of it, usually with rights to vote and to receive dividends.

More terms: Mergers & Acquisitions

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not legal advice.