What is a conglomerate merger?

A conglomerate merger consists of two companies that have nothing in common. Their businesses do not overlap nor are they competitors of one another; however, they do believe that there are benefits in joining their firms. There are many reasons for conglomerate mergers, such as increased market share, synergy, and cross-selling opportunities.

How are conglomerates formed?

Conglomerates are formed from conglomerate mergers, the combination of numerous companies that operate in different industries. The merger occurs among businesses unrelated to each other, yet conglomerate mergers can still result in various strategic benefits to the consolidated entity.

Where can I find a language link for a conglomerate merger?

Language links are at the top of the page across from the title. A conglomerate merger is "any merger that is not horizontal or vertical; in general, it is the combination of firms in different industries or firms operating in different geographic areas".

What is a conglomerate diversification strategy?

A conglomerate diversification strategy helps lessen the risk of loss. For example, if one business sector experiences a decline, other business sectors compensate for the losses. A conglomerate merger allows companies to cross-sell their products when the target market is similar. It inevitably results in higher profits.