What is a merger?

A merger is defined as the combination of two companies into a single entity. This process typically involves companies of similar size coming together to pool their resources, capabilities, and market share, often aiming for synergies that create greater value than the individual companies could achieve on their own.

In a merger, both companies typically agree to move forward as a unified organization, sharing management and operations. This strategic action can enhance competitiveness in the marketplace, expand product offerings, and increase operational efficiencies. A successful merger can lead to improved financial performance and stronger market positioning.

The nuances of a merger can often lead to substantial changes within the organizational structure, corporate culture, and brand identity of the involved companies, with shared benefits anticipated by both parties.