Merger

A merger is a legal agreement that combines two existing companies into a single new entity. It involves the consolidation of the assets, operations, and ownership of the merging companies. In a merger, the companies involved agree to combine their businesses and resources to form a new unified organization. The new company assumes the assets, liabilities, and legal obligations of both merging entities. Mergers can occur for various reasons, such as expanding market presence, achieving economies of scale, enhancing competitive advantage, or entering new markets.