What happens to my shares if two companies that I own merge?

(Mark L) #1

I have some shares in Sainsburys. If the merger between them and Asda happened, what would happen to my shares?

Same applies to, for example, if a company brought Taylor Wimpey. Do the shares get transferred to the new company?

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(Chris) #2

Not the answer you’re looking for it…but…it depends.

Possible scenarios include:

  • Company A takes over B and investor gets cash
  • A takes over B and investor gets shares in A
  • combination of those is also possible too
  • A merges with B and investor gets shares in new company C

Annoyingly the terms of ‘takeover’ or ‘merger’ don’t always define which scenario plays out either. Devil is in the detail

(Vladislav Kozub) #3

Exactly what Chris said. The only certainty you can have is that Freetrade will monitor such corporate actions closely and ensure you get what you, as a shareholder, are entitled to.

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