Amalgamation in the Nature of Purchase :

The amalgamations which are in effect a mode by which one company acquires another company and, as a consequence, the shareholders of the company which is acquired normally do not continue to have a proportionate share in the equity of the combined company, or the business of the company which is acquired is not intended to be continued. Such amalgamations are amalgamations in the nature of purchase.

If any one or more conditions listed in the amalgamation in the nature of merger is not satisfied, it is amalgamation in the nature of purchase.