Merger Slide
Merger Slide
Merger Slide
What is merger?
A merger occurs when two companies combine to form a single company. A merger is very similar to an acquisition or takeover, except that in the case of a merger existing stockholders of both companies involved retain a shared interest in the new corporation. By contrast, in an acquisition one company purchases a bulk of a second company's stock, creating an uneven balance of ownership in the new combined company.
Classification of Merger
Horizontal Merger: A merger involving competitive firms in the same market. Ex: AMD & ATI merged together to beat Intel. Vertical Merger: A merge in which a firm joins up with its supplier. Ex: Nvidia & XFX. Conglomerate Merger: A merger involving firms selling goods in unrelated markets. Ex: Acer & Ferrari combined to launch their new Acer Ferrari series laptops.
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It also does not interfere when new firms enter the