Megamerger

AAA

DEFINITION of 'Megamerger'

The joining of two large corporations, typically involving billions of dollars in value. The megamerger creates one corporation that may maintain control over a large percentage of market share within its industry.


Megamergers occur through the acquisition, merger, consolidation or combination of two existing corporations. Megamergers differ from traditional mergers due to their scale.

INVESTOPEDIA EXPLAINS 'Megamerger'

Megamergers in the recent past have included Pfizer's $68 billion deal for Wyeth (2009), Kraft's nearly $20 billion deal for Cadbury (2010) and the United–Continental merger (2010), which created the world's largest airline.


The first megamerger took place in 1901, when Carnegie Steel Corporation combined with its main rivals to form United States Steel.

RELATED TERMS
  1. Acquisition

    A corporate action in which a company buys most, if not all, ...
  2. All Cash, All Stock Offer

    A proposal by one company to purchase all of another company's ...
  3. Mega Deal

    From the Greek megas, meaning great, this expression refers to ...
  4. Conglomerate

    A corporation that is made up of a number of different, seemingly ...
  5. Hostile Takeover

    The acquisition of one company (called the target company) by ...
  6. Merger

    The combining of two or more companies, generally by offering ...
Related Articles
  1. The Biggest Mergers & Acquisitions In ...
    Investing Basics

    The Biggest Mergers & Acquisitions In ...

  2. How To Profit From Mergers And Acquisitions ...
    Investing Basics

    How To Profit From Mergers And Acquisitions ...

  3. War's Influence On Wall Street
    Bonds & Fixed Income

    War's Influence On Wall Street

  4. What You Need To Know About Net Neutrality
    Stock Analysis

    What You Need To Know About Net Neutrality

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center