Merger

A mergerbusiness or economics refers tocombinationtwo companies into one larger company. Such actionscommonly voluntaryoften involvestock swap. In many instancesmerger resemblestakeover but often results innew company name (often combiningnames oforiginal companies)in new branding.

Classificationsmergers:

• Horizontal mergers take place wheretwo merging companies both produce similar product insame industry.
• Vertical mergers occur when two firms, each working at different stages inproduction ofsame good, combine.
• Conglomerate mergers take place whentwo firms operatedifferent industries.

The occurrence ofmerger often raises concernsanti-trust circles. Devices such asHerfindahl index can analyzeimpact ofmerger onmarketwhat, if any, action could prevent it.

A unique typemerger calledreverse mergerused aswaygoing public withoutexpensetime required by an IPO.

Compare mergersacquisitions.

Famous mergers include:

• AOL Time Warner
• AT&T Comcast

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A mergerCriminal Law characterises situations where one crime subsumes another. See DoctrineMerger