Megamerger

Filed Under »
Dictionary Says

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 Says

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.

Articles Of Interest

  1. Arbitrage Squeezes Profit From Market Inefficiency

    This influential strategy capitalizes on the relationship between price and liquidity.
  2. Mergers And Acquisitions: Understanding Takeovers

    In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.
  3. Warding Off Hostile Takeovers

    The purpose of this article is to provide a general overview of hostile corporate takeovers, while highlighting a general course of action against such activity. This article provides basic ...
  4. Dominion Diamond Goes Shopping - Should You?

    These are exciting times in diamond mining, is it time to buy?
  5. Verizon, AT&T And Vodafone – Here We Go Again

    A popular rumor gets new life with word that AT&T may help Verizon facilitate a buyout of Vodafone.
  6. Buffett And Goldman Sachs Do Sweetheart Deal

    Goldman Sachs announced March 26 that it will issue to Berkshire Hathaway in October the number of shares equal to Warren Buffett's profit from the 2008 warrants he got to purchase 43.5 million ...
  7. Finding Undiscovered Stocks

    Wall Street tends to focus on large cap stocks, leaving other stocks under-followed and undervalued.
  8. Biggest Acquisition Failures Of All Time

    Some acquisitions just aren't meant to be. Here are a select few acquisitions that failed miserably.
  9. Reverse Takeover

    Learn more about this type of takeover and how companies use it to avoid IPOs.
  10. Goodwill

    Goodwill is more than just benevolence - it also refers to an accounting term frequently used in M&A. Learn more about it here.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Yield Elbow

    The point on the yield curve indicating the year in which the economy's highest interest rates occur. The yield elbow is the peak of the yield curve, signifying where the highest interest rates occurred.
  2. Xenocurrency

    A currency that trades in markets outside of its domestic borders.
  3. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.
  4. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.
  5. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.
  6. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=2532856fcf2f66953f6a6d7863be9089