Business Dictionary
Merger
Definition
A combination of two things, especially companies, into one.
Deep Dive
A merger in the business world involves two or more companies voluntarily combining to form a new, single entity. This strategic move is often pursued when companies identify mutual benefits, such as increased market share, reduced competition, enhanced product offerings, or improved operational efficiencies through shared resources and expertise. Mergers are typically distinguished from acquisitions by their more collaborative nature, where both companies often agree to combine their operations and identities to achieve a shared strategic vision.
Examples & Use Cases
- 1The merger of Exxon and Mobil to form ExxonMobil, creating a global energy giant
- 2The merger of Sprint and T-Mobile to create a stronger competitor in the U.S. telecommunications market
- 3Daimler-Benz AG and Chrysler Corporation merging to form DaimlerChrysler (though later separated).
Related Terms
AcquisitionConsolidationSynergy