A process of international merger of companies implies the extinction or dissolution of one or more legal entities incorporated in several jurisdictions (different among themselves), for their consolidation into one of the preexisting companies (merger by absorption or merger by incorporation). In addition to the effect of extinction or dissolution of the absorbed company as mentioned above, the international merger by absorption also causes the transfer in block of the assets of the absorbed company to the absorbing one, increasing the capital stock of the latter in the applicable portions. The shareholders of the absorbed company (the extinguished one) will become shareholders of the absorbing company, receiving (in exchange) a number of shares proportional to their corresponding interest in the capital stock of the absorbed company.
Given the above, the international merger by absorption process has the following most outstanding characteristics:
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