merger

noun
merg·​er | \ ˈmər-jər How to pronounce merger (audio) \

Definition of merger

1 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
2a : 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 (such as business concerns)

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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 on the Web

All these plans may change though, depending on how the T-Mobile merger shakes out. Chaim Gartenberg, The Verge, "5G is almost here — here’s how everyone’s getting ready," 7 Sep. 2018 This past April, Sprint agreed to an all-stock merger with T-Mobile to combine both wireless carriers. Shoshana Wodinsky, The Verge, "Sprint quietly increased the cost of its admin fee for all customers earlier this year," 17 July 2018 Trump had voiced opposition to the merger during the campaign and his administration ultimately sided against AT&T. The Department of Justice filed suit in November to block the deal, a case that is still pending. Anchorage Daily News, "Cohen's $600,000 deal with AT&T specified he would advise on Time Warner merger, internal company records show," 11 May 2018 Houston offshore oil and gas producer Talos Energy is now a public company after closing its nearly $2 billion merger Thursday with Louisiana's Stone Energy. Jordan Blum, Houston Chronicle, "Talos Energy goes public with closing of Stone acquisition," 10 May 2018 Business and government sales have been under pressure since Office Depot and competitor Staples’ planned $6.3 billion merger more than two years ago. Marcia Heroux Pounds, Sun-Sentinel.com, "Office Depot increases first-quarter sales by 6 percent," 9 May 2018 An earlier request for proposals was only looking at renovations to the basement where City Health Department offices were located prior to last year's merger with the county. Thomas Jewell, cleveland.com, "Shaker, county to split cost on repaving Fairhill Road: Council recap," 25 Apr. 2018 CVS Health and Aetna are completing a $69 billion merger. Chrissie Thompson, Cincinnati.com, "Ohio pharmacists now must tell you about cheaper drug options. That had been banned.," 4 Apr. 2018 There are also more players in the ticketing space with larger client bases now than there were prior to the merger. Dave Brooks, Billboard, "Five Things to Know About Competition in Ticketing, Eight Years After Live Nation-Ticketmaster Merger," 2 Apr. 2018

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.

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First Known Use of merger

1728, in the meaning defined at sense 1

History and Etymology for merger

merge + -er (as in waiver)

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Learn More about merger

Dictionary Entries near merger

merge

Mergenthaler

Mergentheim

merger

mergh

Mergus

meri-

Statistics for merger

Last Updated

21 Apr 2019

Look-up Popularity

Time Traveler for merger

The first known use of merger was in 1728

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More Definitions for merger

merger

noun

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.

Source: Investing Answers

merger

noun

English Language Learners Definition of merger

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

merger

noun
merg·​er | \ ˈmər-jər How to pronounce merger (audio) \

Kids Definition of merger

: the combination of two or more businesses into one

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merger

noun
merg·​er | \ ˈmər-jər How to pronounce merger (audio) \

Legal Definition of merger

1 : the absorption of a lesser estate or interest into a greater one held by the same person — compare confusion
2 : the incorporation and superseding of one contract by another
3a : the treatment (as by statute) of two offenses deriving from the same conduct such that a defendant cannot be or is not punished for both especially when one offense is incidental to or necessarily included in the other a merger of offenses in a statute a merger of convictions
b : the doctrine according to which such offenses must be merged — compare double jeopardy

Note: Merger commonly involves the interpretation of statutes and legislative intent in deciding whether two or more offenses deriving from the same conduct remain distinct.

4 : a doctrine in civil litigation: a judgment in favor of a plaintiff incorporates and supersedes the cause of action and any claims based on it and requires that further litigation in the case by the defendant be concerned with the judgment itself — compare bar sense 3b, estoppel by judgment at estoppel sense 2a, res judicata
5 : the superseding of a prior agreement in a divorce case by the divorce decree
6a : the act or process of merging
b : absorption by one corporation of another also : any of various methods of combining two or more organizations (as business concerns) — compare consolidate
cash merger
: a merger in which shareholders in the company to be absorbed receive cash for their shares rather than shares in the absorbing company a tender offer to be followed by a cash merger — see also cash out
de facto merger
: a merger that is characterized by the issuance of stock to the corporation to be absorbed rather than an outright purchase of assets for cash, by continued participation of the shareholders, directors, and employees of the absorbed corporation, and by an assumption of liabilities by the absorbing corporation

Note: Shareholders in a de facto merger are considered to have the same right to an appraisal of the fair value of their shares as shareholders in a statutory merger.

short-form merger
: an accelerated statutory merger between a subsidiary and a parent corporation that controls a large specified majority of shares in the subsidiary
statutory merger
: a merger performed in accordance with relevant statutes that require specific procedures for the notification and approval of shareholders

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More from Merriam-Webster on merger

Rhyming Dictionary: Words that rhyme with merger

Thesaurus: All synonyms and antonyms for merger

Spanish Central: Translation of merger

Nglish: Translation of merger for Spanish Speakers

Britannica English: Translation of merger for Arabic Speakers

Britannica.com: Encyclopedia article about merger

Comments on merger

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