Akademik

merger

(1) acquisition in which all assets and liabilities ( liability) are absorbed by the buyer. Bloomberg Financial Dictionary

(2) More generally, any combination of two companies. The firm's activity in this respect is sometimes called M&A (Merger and Acquisition)

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Mandatory or voluntary exchange of outstanding securities as the result of two or more companies combining assets. Cash payments may accompany share exchange. Euroclear Clearing and Settlement glossary

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merger merg‧er [ˈmɜːdʒə ǁ ˈmɜːrdʒər] noun [countable]

FINANCE an occasion when two or more companies, organizations etc join together to form a larger company etc:

merger between

• A merger between similar banks in the same area should enable them to eliminate 40% of the expenses of one of the banks.

• The two airlines ended merger talks (= discussions about the possibility of merging ) after failing to agree on how much of the combined company each side would own.

• The merger proposal calls for the three companies to be combined into a new entity.

• the terms of themerger agreement

• The merger frenzy (= when a lot of mergers are taking place ) has helped push up cable valuations to record highs on Wall Street.

conˌglomerate ˈmerger FINANCE

the joining together of two or more companies that are completely different in the type of work they do:

• Since conglomerate mergers involve companies with completely independent products, there are few opportunities for a reduction in production costs.

ˌcross-ˈborder ˌmerger FINANCE

a merger between organizations in different countries:

• Cross-border mergers in the arms business have proved much harder to realize than once was expected.

deˌfensive ˈmerger FINANCE

a merger where a company joins with another to avoid being Taken Over (= bought and controlled) by a third company:

• The British firms were forced into defensive mergers and have now almost disappeared.

ˌfriendly ˈmerger FINANCE

a merger that the shareholders of both companies agree should happen:

• I've been on the look out for some years for a smaller company we could have a friendly merger with.

ˌfull ˈmerger FINANCE

a merger where two organizations combine completely, rather than working together in looser ways, for example in joint venture S:

• They decided against a full merger of the two companies because of their conflicting corporate strategies and structures.

ˌhorizontal ˈmerger FINANCE

a merger where a company combines with another that makes the same products, provides the same services etc:

• horizontal mergers that put two regional electricity companies together

reˌverse ˈmerger FINANCE

when a private company buys all the shares of a public company, which has the effect of making the private company into a public company

ˈstock ˌmerger also ˈstock-swap ˌmerger FINANCE

a merger where shareholders in one company receive shares in the other:

• When the stock merger was announced, some shareholders complained that the exchange rate for the stocks was inadequate.

ˌvertical ˈmerger FINANCE

a merger where a company combines with one of its suppliers or customers in the same industry, or with a company that makes the same products or provides the same services as its suppliers or customers:

• the vertical merger of the telecoms company with a telephone equipment maker

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A fusion of two or more companies. Can also represent an acquisition or takeover.

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merger UK US /ˈmɜːdʒə^r/ noun [C] FINANCE, LAW

► a situation when two or more companies, organizations, departments, etc. join together: »The boards finally approved the merger between the two energy groups.
merger of two companies, etc. »The proposed merger of the two fund managers will create a new group with £200 billion of assets under management.
»The CEO thought a friendly merger would revitalize the company.
plan/propose/seek a merger »There was speculation that Glaxo was planning a merger with New York-based Pfizer.
agree/approve a merger »Shareholders voted to approve the merger last week.
block/oppose a merger »The finance minister blocked the merger in June.
merger agreement/deal/plan »The bank said it would press ahead with the merger plan.
merger negotiations/talks » The group's share price fell sharply following the collapse of merger talks.
»a failed/successful/unsuccessful merger

→ See also CONGLOMERATE MERGER(Cf. ↑conglomerate merger), CROSS-BORDER(Cf. ↑cross-border), DEFENSIVE(Cf. ↑defensive) adjective, DEMERGER(Cf. ↑demerger), FRIENDLY(Cf. ↑friendly), HORIZONTAL MERGER(Cf. ↑horizontal merger), REVERSE MERGER(Cf. ↑reverse merger), STOCK MERGER(Cf. ↑stock merger), VERTICAL MERGER(Cf. ↑vertical merger), TAKEOVER(Cf. ↑takeover)

Financial and business terms. 2012.