Examples of merger in a Sentence
The law firm announced its $50 million merger with one of its competitors.
If the proposed merger of the two oil companies goes through, it would be bad for the economy.
Recent Examples of merger from the Web
Proptiger is an Indian real estate portal in which Softbank owns a stake through its merger with Housing.com.
The merger with Virgin America is taking shape, with all flights and reservations made on Virgin America moving to the Alaska Airlines system by April 25.
University of Chicago Medicine finalized its merger in 2016 with Ingalls Health System.
The context behind the CBS-Viacom CEO battle The media industry is melting away as fewer people pay for television, and that’s sparked a series of big mergers.
Those videos also reignited a debate over Sinclair’s size and its prolonged battle to complete a $3.9 billion blockbuster merger with Tribune Media.
American is also canceling an order with Boeing’s European rival, Airbus, that was made last decade by US Airways prior to its merger with American.
The recovery eventually came through bankruptcy, U.S. government rescue and a merger with Fiat.
Liz Dufour Kroger is discussing a possible merger with Target, according to a Fast Company report, citing unnamed sources.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'merger.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Origin and Etymology of merger
First Known Use: 1728See Words from the same year
Financial Definition of MERGER
What It Is
A merger is a corporate strategy of combining different companies into a single company in order to enhance the financial and operational strengths of both organizations.
How It Works
A merger usually involves combining two companies into a single larger company. The combination of the two companies involves a transfer of ownership, either through a stock swap or a cash payment between the two companies. In practice, both companies surrender their stock and issue new stock as a new company.
There are several types of mergers. For example, horizontal mergers may happen between two companies in the same industry, such as banks or steel companies. Vertical mergers occur between two companies in the same industry value chain, such as a supplier or distributor or manufacturer. Mergers between two companies in related, but not the same industry are called concentric mergers. These mergers can use the same technologies or skilled workforce to work in both industry segments, such as banking and leasing. Finally, conglomerate mergers occur between two diversified companies that may share management to improve economies of scale for both companies.
A merger sometimes involves new branding or identity of the merged companies. Otherwise, a merger may lead to a combination of the names of the two companies, capitalizing on the brand identity of both companies.
Why It Matters
Mergers may result in a stronger company with combined assets, competencies, and markets. At the same time, mergers may result in a dilution of the financial strengths of one of the companies, particularly if the new company results in the issuance of more stock across the same asset base of the two merged companies. Finally, mergers often fail because of the clash of corporate cultures between the two companies, a reluctance to restructure redundant management and operations, incompatibilities of the technologies used by the companies, and disruptions in the workforce.
Because mergers are difficult to implement, most ultimately take the form of an acquisition, that is, the purchase of a weaker company by a stronger company.
MERGER Defined for English Language Learners
Definition of merger for English Language Learners
: the act or process of combining two or more businesses into one business
MERGER Defined for Kids
legal Definition of merger
- a merger of offenses in a statute
- a merger of convictions
- a tender offer to be followed by a cash merger
Learn More about merger
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