In contrast to the group, in which the companies involved (the group companies) retain their legal independence, the trust is a horizontal, vertical or inorganic amalgamation of several companies that give up their legal and economic independence.
A trust is understood to be a horizontal, vertical or inorganic association of several companies that give up their legal and economic independence. Trusts are created through mergers. There are two options:
Fusion by inclusion
It occurs when the assets of the transferring company are transferred to the acquiring company. In practical terms, this means that a weaker company is bought up by a stronger company. The company of the transferring company is deleted.
Fusion through regeneration
With this type of trust formation, a new company is established to which the assets of the merging companies are transferred. All transferring companies expire.
Business combinations of all kinds are called concentration because they concentrate economic (sometimes also political) power in a few. The concentration of economic power does not only take place due to mergers, i.e. outside the company, but also because one or more companies grow faster than others (internal company growth).