Legal Definitions - bust-up merger

A bust-up merger is a type of merger where the acquiring corporation sells off lines of business owned by the target corporation to repay the loans used in the acquisition. This type of merger is also known as a merger.

For example, if Company A acquires Company B through a bust-up merger, Company A may sell off certain divisions or assets of Company B to pay for the acquisition. This can result in the dissolution of Company B as a separate entity.

Bust-up mergers are often used when the acquiring corporation is only interested in certain parts of the target corporation's business and wants to divest the rest. This type of merger can also be used to raise funds for the acquiring corporation.