It quickly becomes evident that, in practice, the original East India Company had faced scarcely any measurable competition.

The two companies merge in 1708, by a tripartite indenture involving both companies and the state.

Under this arrangement, the merged company lends to the Treasury a sum of £3,200,000, in return for exclusive privileges for the next three years, after which the situation is to be reviewed.

The amalgamated company becomes the United Company of Merchants of England Trading to the East Indies.

In 1712, another act renews the status of the company, though the debts are repaid.