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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 ?
These findings are contrary to Choi and Philippatos (1983), but support the accepted view that conglomerates do a better job in controlling their risk.
And while the legislation creates untold opportunities for huge profits for the conglomerates, Congress rejected an effort by Representative Maxine Waters, Democrat of California, to help low-income citizens set up limited basic bank accounts.
In March Indonesian conglomerates were once again were hit unequivocally.
Mostly family-run enterprises known as "chaebols", South Korea's conglomerates have been accused of over expanding and over-diversifying during the country's boom years, sowing the seeds for financial crisis.
As a result, competition from larger white-owned conglomerates intensified in the ethnic beauty aids industry, and black manufacturers found few options open to them beyond the traditional business strategies used by blacks to cope with racism and racial discrimination in the economy.
This time, however, instead of submitting separate proposals, the conglomerates are looking to join forces to have a more powerful proposal.
APRA Chairman Wayne Byres said: the group governance and risk management requirements released today will further strengthen conglomerate groups by enhancing oversight of group risks and exposures, and limiting potential contagion and systemic risks.
The FCD provisions for identifying conglomerates have led to some member states including asset management companies and some not.
Without the conglomerates, you can wave goodbye to free, high-quality shows.
La Moderna will also take on an additional $900 million in debt, creating one of Mexico's largest conglomerates.
Richard McLaren, the Justice Department's antitrust chief, was pressing antitrust cases against several conglomerates, most notably International Telephone and Telegraph.