reverse merger
noun[C]
ukusFINANCE,STOCK MARKET
asituationin which aprivatecompany(= one whosesharesare nottradedon astockmarket)buysmost of thesharesin apubliccompanyso that itcontrolsthatcompanyandbecomesapubliccompanyitself. Areversemergerallowsaprivatecompanyto getcapitalon astockmarketwithout aninitialpublicoffering(= makingsharesavailablefor the firsttime):
He staved offbankruptcybyengineeringareversemergerwith adormantholdingcompanylistedon the Milanstockexchange.