Short-form Merger

A short-form merger is the merger of a parent and a subsidiary when the parent already owns substantially all of the subsidiary. In some U.S. states, for example, a parent that owns at least 90% of a subsidiary can have a merger of the parent and subsidiary go through without the approval of the subsidiary's shareholders.

Thus, you can have a two-step merger:
--Step 1: the buyer acquires substantially all of the subsidiary's stock
--Step 2: the buyer freezes out the target company's remaining shareholders

A short-form merger can be upstream or downstream.
--upstream (the subsidiary merges into the parent)
--downstream (the parent merges into the subsidiary)—
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