What is an example of a conglomerate merger?

A conglomerate merger involves companies active in totally unrelated business activities or operating in different geographical locations. An airline company acquiring a newspaper is a good example of a conglomerate merger. Conglomerate mergers first appeared in the United States and were quite popular in the 1960s, and 1970s.

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.

What is a pure conglomerate merger?

Within this type of merger there are two additional categories: pure and mixed. When we speak about a pure conglomerate merger, we are talking about two companies with absolutely no market crossover. Conversely, a mixed conglomerate merger is when two companies merge in order to expand their markets/products/services.

What is a conglomerate company?

A conglomerate is a corporation of several different, sometimes unrelated, businesses. In a conglomerate, one company owns a controlling stake in several smaller companies, conducting business separately and independently.