An agreement generated by two companies to unite them into one.
Merger refers to combining two or more companies, organizations, or businesses to form a larger entity. In a merger, the companies involved agree to join and operate as a single entity, with shared ownership and control. A merger typically aims to achieve greater efficiency, economies of scale, and market power.
Mergers can take many different forms:
- including horizontal mergers between companies in the same industry;
- vertical mergers between companies in different stages of the same supply chain;
- conglomerate mergers between companies in unrelated industries.