Omni Trax Inc. owns 95 percent of the shares of Pinpoint App Inc. Through a certain transaction, Omni combines with Pinpoint, but only Omni continues to exist. This is

Question

Omni Trax Inc. owns 95 percent of the shares of Pinpoint App Inc. Through a certain transaction, Omni combines with Pinpoint, but only Omni continues to exist. This is​

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In a short-form merger, one company that owns at least 90% of the shares of another company merges with and absorbs the other company, with no vote of the shareholders of the acquired company required. This is also known as a parent-subsidiary merger, since the two companies have a parent-subsidiary relationship.