Congeneric Merger

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DEFINITION of 'Congeneric Merger'

A type of merger where two companies are in the same or related industries but do not offer the same products. In a congeneric merger, the companies may share similar distribution channels, providing synergies for the merger.

BREAKING DOWN 'Congeneric Merger'

As a general rule, mergers fall into one of several categories, such as horizontal, vertical, congeneric or conglomerate. An example of a congeneric merger is Citigroup's acquisition of Travelers Insurance. While both were in the financial services industry, they had different product lines.

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RELATED FAQS
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    In economics, utility function is an important concept that measures preferences over a set of goods and services. Utility ... Read Full Answer >>
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  4. What are some common accretive transactions?

    The term "accretive" is most often used in reference to mergers and acquisitions (M&A). It refers to a transaction that ... Read Full Answer >>
  5. What are some ways to make a distribution channel more efficient?

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