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Tasmo Inc. and Velmo Inc. are both corporations that manufacture metal snaps, so they are competitors. Velmo has a huge part of the market share but also has huge outstanding debt. Tasmo is a newcomer to the market with minimal outstanding debt. Tasmo and Velmo decide to merge their companies to improve their market share and financial picture. After the merger is completed, Tasmo is the company that remains. Which shareholders must approve this transaction

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Based on the fact that Tasmo will remain when the merger with Velmo goes through, the shareholders who need to approve this transaction are the Velmo shareholders.

Who approves a merger?

When a merger is to be conducted, the shareholders of the target company absolutely must be consulted. They will then approve the merger by way of voting.

In this scenario, the company that will remain is Tasmo which makes Tasmo the acquiring company and Velmo Inc, the target. The Velmo shareholders therefore need to approve the merger.

Find out more on mergers at https://brainly.com/question/14195407.

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