Merger

How it is used

Usually heard in the pair 'mergers and acquisitions' (M&A). Mergers often need shareholder approval and clearance from competition authorities. The verb is 'merge with'. In business news the word is also used loosely for any combination of companies.

Example sentences

1. The merger of the two banks needs approval from the competition authority.

2. After the merger, the new company will have 4,000 employees.

Common collocations

• mergers and acquisitions
• merger agreement
• approve a merger
• merger control
• merge with

Related terms

• acquisitionThe purchase of a company, part of a company or a business, usually by buying its shares or its assets.
• takeoverThe act of gaining control of a company, usually a listed one, by buying a majority of its shares, sometimes against the wishes of its management.
• due diligenceA detailed investigation of a company's legal, financial and commercial position, carried out before buying it, investing in it or signing a major contract with it.
• target companyThe company that a buyer plans to acquire or invest in during a merger, acquisition or takeover.

More terms: Mergers & Acquisitions

• share purchase agreement
• closing
• condition precedent
• earn-out