In a merger, both sets of shareholders have to agree to exchange their existing shares for shares in the new company.

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In a merger, shareholders of both companies involved typically must agree to exchange their existing shares for shares in the newly formed entity, as part of the terms of the merger agreement. This process is essential for the merger to proceed, as it ensures that the owners of both companies approve of the consolidation and are willing to become shareholders of the combined entity.

In a Merger, Both Sets of Shareholders Have to Agree