- The definition of a merger is a combining of multiple elements, particularly corporations, into one.
An example of a merger is two law firms joining into one.
merger definition by Webster's New World
- ☆ a combining of two or more companies, corporations, etc. into one, as by issuing stock of the controlling corporation to replace the greater part of that of the other or others
- the absorption of one estate, interest, obligation, contract, etc. in another, or of a lesser offense in a greater
merger definition by American Heritage Dictionary
- The act or an instance of merging; union.
- The union of two or more commercial interests or corporations.
- Law The absorption of a lesser estate, liability, right, action, or offense into a greater one.
merger - Business Definition
merger - Cultural Definition
The union of two or more independent corporations under a single ownership. Also known as takeovers, mergers may be friendly or hostile. In the latter case, the buying company, having met with resistance from directors of the targeted company, usually offers an inflated (overmarket) price to persuade stockholders of the targeted company to sell their shares to it. Such mergers often have been financed by junk bonds.
- Especially common in the 1980s, hostile takeovers have become highly controversial. Some contend that they bring needed infusions of capital and efficiency to the targeted company. Others argue that, having borrowed heavily to finance the merger, the buyer is forced to sell valuable assets of the targeted company to pay off its debt.
merger - Investment & Finance Definition
The process of two or more companies combining. In one model, one company retains its name and often most of its top management. This company acquires all the assets and liabilities of the firm being acquired, which ceases to exist after the merger is completed. Another type of a merger is a consolidation, in which a completely new firm is created and both the other two firms cease to exist. Often, mergers are classified into three types: vertical, horizontal, or conglomerate.
A vertical merger involves combining a company with its supplier or customer.
A horizontal merger combines two companies that are direct competitors making the same products.
A conglomerate merger involves two companies that are not in related industries or businesses.
merger - Legal Definition
- In contract law, the action of superceding all prior written or oral agreements on the same subject matter.
- In criminal law, the inclusion of a lesser offense within a more serious one, rather than charging it separately, which might cause double jeopardy.
- In litigation, the doctrine that all of the plaintiff’s prior claims are superceded by the judgment in the case, which becomes the plaintiff’s sole means of recovering from the defendant.
- The combination under modern codes of civil procedure of law and equity into a single court.
- In corporate law, the acquisition of one company by another, and their combination into a single legal entity.