merger

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.

Notes:

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

See also: Acquisition, Acquisition Premium, Demerger, Forward Triangular Merger, Hostile Takeover, Reverse Triangular Merger, Sweetheart Deal, Takeover, Target Firm

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Merger

(1) Acquisition in which all assets and liabilities are absorbed by the buyer. (2) More generally, any combination of two companies. The firm's activity in this respect is sometimes called M&A (Merger and Acquisition)

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merger

A combination of two or more companies in which the assets and liabilities of the selling firm(s) are absorbed by the buying firm. Although the buying firm may be a considerably different organization after the merger, it retains its original identity. Compare consolidation. See also downstream merger, synergy.