Company B is an 80%-owned subsidiary of Company A. Company B has just signed a contract with Company C. Company A wants the contract (its rights and obligations) for itself.

Can Company A acquire the contract from Company B by taking over 100% of Company B, thereby making it a wholly owned subsidiary? Can it use some other mechanism such as a purchase transfer or assignment of interests to acquire the contract? Or must Company A keep Company B's contract separate even if B is a subsidiary? Must company C agree if this expands the scope of the contract (which was initially for all of "B's" needs of a particular product, and A wants it to supply of all of its needs?

  • Does the contract say it is no-transferable? Pretty important Dec 29 '20 at 1:48

If the contract is transferable then B can transfer the agreement to A regardless of C's opinion. Otherwise A could certainly buy rest of B and then move employees from A to B to carry out of the contract and the profit would flow to A.

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