Merger

Defintion

Combination of two or more companies into one with a single identity, typically that of the larger or largest of the companies.

Example

A merger is the fusion of two entities to form a new entity (A + B = C), while an acquisition is the purchase of one entity by another (A + B = A).

See Also

Acquisition.

Tips

When two or more companies merge to form a new company, the new company may use the name of one of the former companies, but is still a new company. A new set of books and records are developed.