Merger
Simply put
In a merger by absorption, the merged company ceases to exist and its assets and liabilities pass to the absorbing company, and in a merger by consolidation, both companies cease to exist and a new company is formed. The partners of the dissolved company usually receive stakes or shares in the surviving entity.
For accounting, it is usually treated under IFRS 3 (Business Combinations), is subject to partners' approvals and Companies Law procedures, and may require approval from the General Authority for Competition.
Example
Two pharmacy groups in two cities decided on a merger by absorption: the second group's branches, employees, and debts passed to the first, and the second group's owners received stakes in the first company in place of their old stakes.