An amalgamation triggers a deemed year-end for all companies involved immediately before the amalgamation. ... If the deemed year-end is different from the fiscal year-end, this will result in a short fiscal year for the amalgamated entity.

What are the consequences of amalgamation?

The most obvious effect of amalgamation is an increase in administrative scale. This may lead to improved service quality because specialization and standardization may result in more experienced or better educated workers.

What happens when two companies amalgamate?

Amalgamation is the combination of two or more companies into a new entity by combining the assets and liabilities of both entities into one. The transferor company is absorbed into the stronger, transferee company, leading to an entity with a stronger customer base and more assets.