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:This page deals with the combination of two companies into one. For information about other uses of the word "merge", see merge.

In business or economics a merger is a combination of two companies into one larger company. Such actions are commonly voluntary and often involve stock swap. A merger can resemble a takeover but result in a new company name (often combining the names of the original companies) and in new branding; in some cases, terming the combination a "merger" rather than an acquisition is done purely for political or marketing reasons.

1 Classifications of mergers

A unique type of merger called a reverse merger is used as a way of going public without the expense and time required by an IPO.

2 Issues

The occurrence of a merger often raises concerns in anti-trust circles. Devices such as the Herfindahl index can analyze the impact of a merger on a market and what, if any, action could prevent it. Regulatory bodies such as the European Commission and the United States Department of Justice may investigate anti-trust cases for monopoliesAlternate use: Monopoly (game In economics, a monopoly (from the Greek monos one + polein to sell) is defined as a market situation where there is only one provider of a product or service. Monopolies are characterized by a lack of economic competition fo dangers, and have the power to block mergers.

The completion of a merger does not ensure the success of the resulting organization; indeed, many (in some industries, the majority) mergers result in a net loss of value due to problems. Correcting problems caused by incompatibility—whether of technology, equipment, or corporate culture— diverts resources away from new investment, and these problems may be exacerbated by inadequate research or by concealment of losses or liabilities at one of the partners. Overlapping subsidiaries or redundant staff may be allowed to continue, creating inefficiency, and conversely the new management may cut too many operations or personnel, losing expertise and disrupting employee culture. These problems are similar to those encountered in takeovers. For the merger to not be considered a failure, it must increase shareholder value faster then if the companies were separate, or prevent the deterioration of shareholder value more then if the companies were separate.

3 Major mergers since 1990



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Merger Mergers Companies New Universal Problems

Topics: Merger Mergers Companies New Universal Problems Value...

Mergers and acquisitionsThe phrase mergers and acquisitions (M&A refers to the aspect of business strategy and management dealing with the merging and/or acquiring of different companies. Usually these occur in a friendly setting where officers in each company involved come togeMergerThis page deals with the combination of two companies into one. For information about other uses of the word "merge", see merge. In business or economics a merger is a combination of two companies into one larger company. Such actions are commonly voluntaMerger doctrineThe merger doctrine is a practice in United States copyright law which says that if an idea and the way to express it are so intricately tied that the ways of expression have little possible variation, there will not be copyright infringement, lest the co
Merger TreatyThe Merger Treaty signed in Brussels on 8 April 1965 and in force since 1 July 1967, first gathered together the organisational structures of the then three European Communities ( European Coal and Steel Community, European Economic Community and Euratom)  


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