Mergers, when two companies combine, happen almost every day all over the world. Since mergers are so common in the business world, the intricacies and steps involved in a merger can be overlooked. A California company’s pending merger shows the steps that are required to complete a successful merger.

The California company Bazi is in talks with GT Beverage Company regarding a pending merger between the companies. Like most companies, Bazi has shareholders. Bazi as a company has a responsibility to its shareholders and is required to keep the shareholders updated on the status of a pending merger. Currently, Bazi is in the process of providing a merger update to the shareholders. The update is in regard to the timeframe for the pending merger.

The merger is pending pursuant to the Merger Agreement that was entered into by the two companies. The Merger Agreement is an agreement that details the plans of the merger between the two companies. Under the terms of the prevailing Merger Agreement, Bazi anticipates that all of the agreement’s conditions will be met or waived within the current timeframe. Since the conditions of the agreement are expected to be finalized, Bazi intends to request a finalization of the merger one month before the previously announced closing date of October 2012.

Common in many mergers is the transfer of stock. Under the Securities Act of 1933, securities that are offered or sold may have to be registered. A failure to register could result in an inability to be sold or offered within the United States. Mergers are multi-faceted and as illustrated in the Bazi merger, require strategic planning and due diligence.

Source: The Sacramento Bee, “Bazi International, Inc. Provides Update On Pending Merger,” Bazi International, Aug. 7, 2012