merger

  

Definition

Voluntary amalgamation of two firms on roughly equal terms into one new legal entity. Mergers are effected by exchange of the pre-merger stock (shares) for the stock of the new firm. Owners of each pre-merger firm continue as owners, and the resources of the merging entities are pooled for the benefit of the new entity. If the merged entities were competitors, the merger is called horizontal integration, if they were supplier or customer of one another, it is called vertical integration.

Use merger in a sentence

  • The two huge cable television conglomerates assured detractors that their imminent merger would benefit existing customers, but consumers were understandably doubtful.

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  • The two companies decided to make there business's into one, this would turn to be the biggest merger in history.

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  • When Sprint and T-Mobile made that merger in 2014, it shook the foundation of the telecommunication world, no one was expecting the merger to happen.

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