Congeneric Merger

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Mega Deal

    From the Greek megas, meaning great, this expression refers to ...
  2. Horizontal Merger

    A merger occurring between companies in the same industry. Horizontal ...
  3. Vertical Merger

    A merger between two companies producing different goods or services ...
  4. Merger

    The combining of two or more companies, generally by offering ...
  5. Synergy

    The concept that the value and performance of two companies combined ...
  6. Conglomerate Merger

    A merger between firms that are involved in totally unrelated ...
Related Articles
  1. Analyzing An Acquisition Announcement
    Investing Basics

    Analyzing An Acquisition Announcement

  2. Mergers Put Money In Shareholders' Pockets
    Investing

    Mergers Put Money In Shareholders' Pockets

  3. What Makes An M&A Deal Work?
    Options & Futures

    What Makes An M&A Deal Work?

  4. The Basics Of Mergers And Acquisitions
    Options & Futures

    The Basics Of Mergers And Acquisitions

comments powered by Disqus
Hot Definitions
  1. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
  6. Floating Exchange Rate

    A country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that ...
Trading Center