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Related to Conglomerate: Conglomerate merger


A firm engaged in two or more unrelated businesses.


A corporation that runs and manages many, unrelated businesses. The businesses are in different industries and generally have nothing at all to do with each other in terms of what products are produced. The theory behind a conglomerate states that the individual businesses can be managed at lower cost because they are able to pool resources while also reducing risks inherent to any particular industry. Conglomerates are not as popular in the United States as they once were because some became so complex, they were impossible to operate. See also: Keiretsu, Chaebol.


A company engaged in varied business operations, many of which seem unrelated. A conglomerate is designed to have reduced risk, since its various operations are affected differently by business conditions over time. In addition, it is possible for a conglomerate to redistribute its corporate assets depending on which operations show the most promise. Conglomerates were popular among investors during the 1960s but investors' interest in them faded during the 1970s and the 1980s.


A conglomerate is a corporation whose multiple business units operate in different, often unrelated, areas.

A conglomerate is generally formed when one company expands by acquiring other firms, which it brings together under a single management umbrella.

In some, but not all, cases, the formerly independent elements of the conglomerate retain their brand identities, though they are responsible to the conglomerate's management.

Some conglomerates are successful, with different parts of the whole contributing the lion's share of the profits in different phases of the economic cycle, offsetting weaker performance by other units.

Other conglomerates are never able to meld the parts into a functioning whole. In those cases, the parent company may sell or spin off various divisions into new independent companies.

References in periodicals archive ?
Mega and Forbes group (MFG), is a diversified business conglomerate which has undergone rapid advancement since its inception.
Our aim is to become an internet conglomerate," says founder Vijay Sharma.
Stakeholders are also asked to give their opinion on the inclusion of institutions for occupational retirement provision (IORP) within the category of financial conglomerates.
Seven out of the top-100 conglomerates saw a year-on-year growth in after-tax earnings in 2008, including Taiwan Cogeneration Group, Lee Chang Yung Group, Fubon Group, CTCI Group, Quanta Computer Group, Far Glory Group, and VIA Technologies Group.
I classify a firm in a given year as a diversified firm or a conglomerate if the firm has two or more segments with different primary 4-digit SIC codes throughout the year.
In a conglomerate where Tyco Capital's cost of funds must remain low for it to turn a profit -- after all, money is the most important resource for a specialty financial services firm that engages in leasing and lending -- the division's very survival is dependent on the parent company's overall debt rating.
Regulations implementing the 1996 Banking Law's provisions on financial conglomerates became effective in June 2000.
FOX SPORTS INTERNATIONAL, a unit of New York-based television network Fox Entertainment, and Argentina's TeleRed Imagen which is partly owned by Argentine media conglomerate Grupo Clarin, are joining to create a regional Spanishlanguage sports network.
Wahid has already directly intervened on behalf of particular conglomerate owners.
This paper examines the effect of conglomerate mergers on the risk of the combined company.
So intense was the lobbying by Citigroup that the legislative effort at times took on the appearance of a private bill for the giant conglomerate.