Merger

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DEFINITION of 'Merger'

The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock.

INVESTOPEDIA EXPLAINS 'Merger'

Basically, when two companies become one. This decision is usually mutual between both firms.

RELATED TERMS
  1. Acquisition

    A corporate action in which a company buys most, if not all, ...
  2. Megamerger

    The joining of two large corporations, typically involving billions ...
  3. Consolidate

    The combining of assets, liabilities and other financial items ...
  4. Forward Triangular Merger

    The acquisition of a target company by a subsidiary of the purchasing ...
  5. Target Firm

    A company which is the subject of a merger or acquisition attempt. ...
  6. Sweetheart Deal

    A merger, a sale or an agreement in which one party in the deal ...
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