1 merger | Definition of merger

merger

noun
merg·​er | \ ˈmər-jər How to pronounce merger (audio) \

Definition of merger

1 law : the absorption of an estate, a contract, or an interest in another, of a minor offense in a greater, or of a cause of action into a judgment
2a : the act or process of merging
b : absorption by a corporation of one or more others also : any of various methods of combining two or more organizations (such as business concerns)

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Examples of merger in a Sentence

The law firm announced its $50 million merger with one of its competitors. If the proposed merger of the two oil companies goes through, it would be bad for the economy.

Recent Examples on the Web

Another recurring theme is the complete merger of bear and human. David James, Anchorage Daily News, "New book explores mankind’s fascination with bears, from Stone Age to 'Winnie the Pooh’," 31 Aug. 2019 Fora more unpredictable workflow, your specialty could be mergers and acquisitions. Valerie Sweeten, Houston Chronicle, "Seeking a law degree? Find the right niche," 23 Aug. 2019 The botanical garden is a not-for-profit organization and part of Holden Forests & Gardens, which was created by its 2014 merger with the Holden Arboretum. Evan Macdonald, cleveland.com, "Jeptha Wade’s descendants appeal ruling in years-long land dispute with Cleveland Botanical Garden," 9 Aug. 2019 It was supposed to be a transformative merger in an industry facing intractable challenges. Liz Alderman, New York Times, "How France’s Intrusive Demands Quashed the Fiat-Renault Deal," 6 June 2019 The all-stock deal is the largest U.S. bank merger since the financial crisis ushered in a stricter regulatory regime that kept banks on the sidelines of recent deal-making booms. Allison Prang, WSJ, "BB&T to Buy SunTrust in Largest Bank Deal Since the Financial Crisis," 7 Feb. 2019 In 2015, there were 10 mergers announced involving Wisconsin banks, and in 2016, there were 18. Paul Gores, Milwaukee Journal Sentinel, "Bank Mutual set to switch to Associated Bank this weekend," 20 June 2018 Judge Richard Leon has gone and approved what would be the biggest media merger of our time here. Fox News, "Judge Approves AT&T-Time Warner Merger," 13 June 2018 Companies can then design terms of service, or governments can design regulation, which requires data deletion, or forces everyone to opt back in to data sharing in the event of an acquisition or merger. Molly Wood, WIRED, "The Ethics of Hiding Your Data From the Machines," 22 Aug. 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'merger.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of merger

1728, in the meaning defined at sense 1

History and Etymology for merger

merge + -er (as in waiver)

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More Definitions for merger

merger

noun

Financial Definition of merger

What It Is

A merger is a corporate strategy of combining different companies into a single company in order to enhance the financial and operational strengths of both organizations.

How It Works

A merger usually involves combining two companies into a single larger company. The combination of the two companies involves a transfer of ownership, either through a stock swap or a cash payment between the two companies. In practice, both companies surrender their stock and issue new stock as a new company.

There are several types of mergers. For example, horizontal mergers may happen between two companies in the same industry, such as banks or steel companies. Vertical mergers occur between two companies in the same industry value chain, such as a supplier or distributor or manufacturer. Mergers between two companies in related, but not the same industry are called concentric mergers. These mergers can use the same technologies or skilled workforce to work in both industry segments, such as banking and leasing. Finally, conglomerate mergers occur between two diversified companies that may share management to improve economies of scale for both companies.

A merger sometimes involves new branding or identity of the merged companies. Otherwise, a merger may lead to a combination of the names of the two companies, capitalizing on the brand identity of both companies.

Why It Matters

Mergers may result in a stronger company with combined assets, competencies, and markets. At the same time, mergers may result in a dilution of the financial strengths of one of the companies, particularly if the new company results in the issuance of more stock across the same asset base of the two merged companies. Finally, mergers often fail because of the clash of corporate cultures between the two companies, a reluctance to restructure redundant management and operations, incompatibilities of the technologies used by the companies, and disruptions in the workforce.

Because mergers are difficult to implement, most ultimately take the form of an acquisition, that is, the purchase of a weaker company by a stronger company.

Source: Investing Answers

merger

noun

English Language Learners Definition of merger

: the act or process of combining two or more businesses into one business

merger

noun
merg·​er | \ ˈmər-jər How to pronounce merger (audio) \

Kids Definition of merger

: the combination of two or more businesses into one

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merger

noun
merg·​er | \ ˈmər-jər How to pronounce merger (audio) \

Legal Definition of merger

1 : the absorption of a lesser estate or interest into a greater one held by the same person — compare confusion
2 : the incorporation and superseding of one contract by another
3a : the treatment (as by statute) of two offenses deriving from the same conduct such that a defendant cannot be or is not punished for both especially when one offense is incidental to or necessarily included in the other a merger of offenses in a statute a merger of convictions
b : the doctrine according to which such offenses must be merged — compare