merger

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merger,

in corporate business, fusion of two or more corporations by the transfer of all property to a single corporation. The remaining corporation continues in existence, having absorbed the other(s). Mergers may be of various types: A vertical merger integrates different types of businesses that may share a supplier-customer relationship; a horizontal merger brings together related businesses; an extensional merger. joins two similar businesses to enter a new market; and a hostile takeover occurs when a stronger business absorbs another against its will. The methods of effecting mergers vary. Often the corporation that continues to function makes an outright purchase of the property and stock of the others; exchange of bonds, options, and other agreements are also employed by the corporations involved.

Mergers may be effected to increase profits and reduce losses through the reduction of competition, to diversify production, to protect against the liabilities of concentration in a single area, or to revive or rejuvenate failing businesses by the infusion of new management and personnel. Mergers for monopolistic purposes were among the unfair practices that the Sherman Antitrust ActSherman Antitrust Act,
1890, first measure passed by the U.S. Congress to prohibit trusts; it was named for Senator John Sherman. Prior to its enactment, various states had passed similar laws, but they were limited to intrastate businesses.
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 (1890) and, more especially, the Clayton Antitrust ActClayton Antitrust Act,
1914, passed by the U.S. Congress as an amendment to clarify and supplement the Sherman Antitrust Act of 1890. It was drafted by Henry De Lamar Clayton.
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 (1914) attempted to correct. The international nature of many modern corporations now also subjects mergers to antitrust scrutiny overseas, particularly in the European Union.

The end of the 20th cent. witnessed a great increase in mergers; in the United States alone, 60,375 mergers involving a total of over $4.5 trillion occurred between 1980 and 1996. Among the largest recent U.S. mergers are those between America Online and Time Warner (2000; $165 billion, but worth significantly less after the bubble in Internet-related stocks collapsed), Exxon and Mobil (1999; $81 billion); Citicorp and Travelers Corp. (1998; $72.6 billion), AT&T and Bell South (2006; $67 billion), SBC Communications and Ameritech (1998; $60.1 billion), and AT&T and TCI (1999; $48 billion).

See also conglomerateconglomerate,
corporation whose asset growth, often very rapid, comes largely through the acquisition of, or merger with, other firms whose products are largely unrelated to each other or to that of the parent company.
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.

merger

The final gravitationally bound product of closely interacting galaxies or other interacting systems. Some IRAS galaxies are believed to be recent merger products.

Merger

 

the combining of two or more joint-stock companies, a form of centralization of capital under imperialism. The production of the merging companies may be identical or similar innature (see alsoAMALGAMATION IN ECONOMICS).

merger

1. Commerce the combination of two or more companies, either by the creation of a new organization or by absorption by one of the others
2. Law the extinguishment of an estate, interest, contract, right, offence, etc., by its absorption into a greater one
References in periodicals archive ?
368-2(b) (1)(iii), Example (4), will allow a triangular consolidation or amalgamation to qualify if the transaction meets all the tests (including the "substantially all" test) under the reorganization rules applicable to forward triangular mergers under Sec: 368(a)(2)(D).
As noted earlier in the case of Halozyme, PIPEs are frequently being used in conjunction with reverse mergers to provide companies with not just an alternative way to go public, but with financing once they are listed on the OTC Bulletin Board or, better yet, one of the stock exchanges.
He is the author of Mergers and Acquisitions of CPA Firms: A Guide to Practice Valuation, AICPA, 1998, and of many articles.
Our research found a failure rate of 68% among mergers based on long-term strategic goals, such as adding capabilities or creating a new business model.
Mergers of equals often turn our to be mergers of the equally uninspired.
It is useful to begin a discussion of the public policy and other implications of bank mergers with a brief description of recent trends in merger activity and overall U.
When examining the short-term effects of hospital mergers occurring in the 1982-1989 period, the most noticeable change reported was related to improved operating efficiency as measured by a higher percent of occupancy and a decrease in the rise of total expenses per adjusted admission.
The transactions did not involve statutory mergers, but they were treated as tax-free reorganizations under section 368(a)(1)(C) of the Internal Revenue Code.
The new rules also set out a complex series of additional rules on triangular mergers and address a wide range of Sec.
Among the poorer-performing mergers of recent years were First Union-CoreStates Financial, AT&T-NCR, Conseco-Green Tree Financial, Aetna-Prudential Healthcare, and HFS-CUC (which combined to form Cendant).
If the mergers had gone through, the two new entities would have controlled more than 80% of the market.