noun \ˈmər-jər\

: the act or process of combining two or more businesses into one business

Full Definition of MERGER

law :  the absorption of an estate, a contract, or an interest in another, of a minor offense in a greater, or of a cause of action into a judgment
a :  the act or process of merging
b :  absorption by a corporation of one or more others; also :  any of various methods of combining two or more organizations (as business concerns)

Examples of MERGER

  1. The law firm announced its $50 million merger with one of its competitors.
  2. If the proposed merger of the two oil companies goes through, it would be bad for the economy.

Origin of MERGER

merge + -er (as in waiver)
First Known Use: 1728

Rhymes with MERGER


noun    (Concise Encyclopedia)

Combination of two or more independent business corporations into a single enterprise, usually involving the absorption of one or more firms by a dominant firm. The dominant firm may purchase the other firm's assets with cash or securities, purchase the other firm's stock, or issue its own stock to the other firm's stockholders in exchange for their shares in the acquired firm (thus acquiring the other company's assets and liabilities). In horizontal mergers, both firms produce the same commodity or service for the same market. In vertical mergers, a firm acquires either a supplier or a customer. If the merged business is not related to that of the acquiring firm, the new corporation is called a conglomerate. The reasons for mergers are various: the acquiring firm may seek to eliminate a competitor, to increase its efficiency, to diversify its products, services, and markets, or to reduce its taxes.


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