Mergers and acquisitions (M&A) is the catch-all term used to refer to the different forms for transferring or consolidating ownership of businesses and assets. Although the terms merger and acquisition are used interchangeably, they have different legal meanings. When one company (the acquirer) purchases the stock, equity interests, or assets of another company, the transaction is called an acquisition. Sometimes an acquired company continues to operate independent of the acquirer, and sometimes the acquired company ceases to operate independently and is absorbed by the acquirer. Mergers, on the other hand, are generally the combination of two companies, and result in the formation of a new company.

In New Mexico, mergers and acquisitions (M&A) are governed by state statutes, particularly the New Mexico Business Corporation Act, as well as applicable federal laws. An acquisition occurs when one company takes over another, and the acquired company may either remain independent or be integrated into the acquiring company. In contrast, a merger is the fusion of two companies into a new entity. The process involves various legal and regulatory steps, including due diligence, negotiation of terms, execution of a definitive agreement, and obtaining necessary approvals from shareholders and regulatory bodies. The New Mexico Public Regulation Commission must be notified of mergers involving public utility companies. Additionally, antitrust concerns are addressed under federal law, primarily the Hart-Scott-Rodino Antitrust Improvements Act, which requires parties to certain large transactions to file a notification and report form with the Federal Trade Commission and the Department of Justice before completing the transaction. Attorneys specializing in corporate law can provide guidance on the specific requirements and help navigate the complex legal landscape of M&A.