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. Reverse Triangular Merger

    The formation of a new company that occurs when an acquiring ...
  4. De-Merger

    A business strategy in which a single business is broken into ...
  5. Split-Off

    A means of reorganizing an existing corporate structure in which ...
  6. Merger Securities

    A non-cash asset paid to the shareholders of a corporation that ...
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