These tools are more common in developing countries like India. Amalgamation typically happens between two or more companies engaged in the same line of business or having some similarity in operations, under common management. Reasons may vary from reduction of complexity of the business structure, spin off of vertical to make it an independent entity so that it can run independently. The transferor company, or weaker company, is absorbed into the transferee company, or stronger undertaking is transferred to a different company, forming an entirely different company.