Merger - Financial definition
Financial acronyms
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Concise definition of the term merger
A merger is the amalgamation of two previously separate corporations. The assets and liabilities of both entities are combined into a newly created third entity.
Comprehensive definition of the term merger
Mergers are done for various reasons:
- To realize cost reductions and or increase of profit
- As a strategic move to face competition
- To increase competitiveness through a stronger position in the market