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What is a company merger?

A company merger occurs when two businesses with similar synergies decide that being one company together will yield more profits than being two separate entities. During a merger, the companies involved are likely to undergo quite a bit of restructuring in terms of corporate leadership and operations.

What is a congeneric merger?

A congeneric merger is also known as a Product Extension merger. This type combines two or more companies operating in the same market or sector with overlapping factors, such as technology, marketing, production processes, and research and development (R&D).

What happens if two companies merge?

If both sides decide that the merger makes sense financially, they proceed with a merger agreement. One company may purchase all of the second company's stock in exchange for its own stock, or the two companies may decide to create a new corporation that has its own stock. In this scenario, the new entity gains all shares of both companies.

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