MERGER

Presented By: Md. Jedar Hossain ID No: 111083016

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.

Why do government support merger business?

When the market share of the largest firm in the industry

is low.
It also does not interfere when new firms enter the

market. It rather provides opportunity.

Because merger brings cost and productivity advantages

that can help reduce prices.

It helps to meet foreign competition.