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Merger Meaning: Definition, Examples, and Translations

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merger

[ˈməːdʒə ]

Definitions

Context #1 | Noun

business

A merger is the combining of two or more companies into a single company. It is often done to increase market share, reduce competition, or gain synergies.

Synonyms

acquisition, consolidation, fusion.

Which Synonym Should You Choose?

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Word Description / Examples
merger

Typically used in business contexts when two companies combine to form one entity. It's often used with a neutral or positive connotation.

  • The merger of the two companies will create the largest tech firm in the industry.
  • They announced the merger at a press conference last week.
fusion

Less commonly used in a business context, more often seen in scientific or culinary contexts where elements combine to form something new and different.

  • The restaurant offers a fusion of Asian and Western cuisines.
  • Nuclear fusion is a topic of significant scientific research.
acquisition

Mainly used in business when one company purchases another. This term can sometimes have a more aggressive or competitive connotation.

  • The acquisition of the smaller company was completed last month.
  • They see the acquisition as a strategic move to enter new markets.
consolidation

Often used when multiple companies or departments combine to streamline operations and reduce costs. This term usually implies a process of combining smaller entities into a stronger, single unit.

  • The consolidation of the departments will improve efficiency.
  • They are considering consolidation to reduce overhead costs.

Examples of usage

  • The merger between Company A and Company B created a new industry giant.
  • The merger resulted in cost savings and improved efficiency for both companies.
Context #2 | Noun

law

In legal terms, a merger is a legal consolidation of two entities into one, with one of the entities ceasing to exist as a separate legal entity.

Synonyms

amalgamation, integration, unification.

Which Synonym Should You Choose?

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Word Description / Examples
merger

Best used in business or corporate settings when two companies combine into one.

  • The merger of the two companies created a market leader in the industry.
  • After the merger, employees were concerned about potential layoffs.
amalgamation

Often used in both business and general settings to describe a blending or merging of different elements into one unified whole.

  • The amalgamation of the two departments streamlined the workflow.
  • Her painting style is an amalgamation of various techniques.
unification

Generally used in a broader sense to describe the act of bringing together different entities or groups into one cohesive unit.

  • The unification of Germany in 1990 was a historic event.
  • Their efforts led to the unification of various local clubs into a single organization.
integration

Typically used in the context of combining different systems, processes, or groups to function as one entity.

  • The integration of new software improved efficiency.
  • Social integration initiatives aim to bring different communities together.

Examples of usage

  • The merger of the two companies required approval from the antitrust authorities.
  • The merger agreement outlined the terms and conditions of the consolidation.
Context #3 | Noun

general

A merger can also refer to the joining or combining of two or more things into a single entity, such as cultures, ideas, or concepts.

Synonyms

blend, integration, union.

Which Synonym Should You Choose?

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Word Description / Examples
merger

Used primarily in business and legal settings when two companies or organizations combine into one.

  • The company's merger with a tech giant resulted in significant market power.
  • The banking industry saw a major merger last year.
blend

Common in both literal and figurative contexts, referring to combining different elements smoothly or harmoniously.

  • The chef created a unique blend of spices.
  • The music festival was a perfect blend of genres and cultures.
union

Often relates to the joining of individuals, groups, or entities for a collective purpose. Can be used in both formal and informal settings.

  • The labor union negotiated better working conditions.
  • Their union was celebrated by all their friends and family.
integration

Typically used in technical, social, or organizational contexts when combining parts into a whole, often emphasizing the process of unification or coordination.

  • The software integration will improve the workflow efficiency.
  • The school's integration program aims to support students from diverse backgrounds.

Examples of usage

  • The merger of different musical styles created a unique and innovative sound.
  • The merger of traditional and modern architecture in the building design was striking.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Business

  • Merger activity surged in the 1980s, driven by deregulation and tax benefits that encouraged corporate consolidation.
  • There are two main types of mergers: horizontal (companies in the same industry) and vertical (companies at different stages of production).
  • Notable examples include the merger of Exxon and Mobil in 1999, forming one of the largest oil companies in the world.

Law

  • Mergers are typically subject to regulatory review to prevent anti-competitive practices, monitored by government agencies.
  • A successful merger can lead to benefits like increased market share but can also create legal challenges if not properly structured.
  • The 'Merger Guidelines' provide rules that outline how companies can combine without harming competition.

Finance

  • The valuation of a company before a merger is crucial; methods like discounted cash flow are often used to determine worth.
  • Stock trades often fluctuate significantly upon news of a merger, as investors reassess the potential for growth and risks.
  • Post-merger integration is critical, as it involves aligning operations, cultures, and objectives of the newly combined firms.

Cultural Impact

  • Some mergers create powerful brands; for instance, Disney's acquisition of Pixar revolutionized animated films.
  • Mergers can change local economies, sometimes resulting in job losses or new job opportunities depending on the integration.
  • Popular cinema has depicted mergers in various ways, often highlighting corporate power dynamics and ethical dilemmas.

Origin of 'merger'

Main points about word origin

  • The term 'merger' comes from the Latin word 'mergere', which means 'to plunge' or 'to sink' into one another.
  • 'Merge' started being used in English around the late 15th century, often relating to combining things together.
  • In business jargon, it became widely popular in the mid-20th century, particularly as corporations began consolidating.

The word 'merger' originated in the early 19th century, derived from the French word 'fusion'. The concept of merging two entities has been a common practice in business and law for centuries, evolving to its modern usage in the corporate world. Mergers have played a significant role in shaping industries, economies, and legal frameworks around the world.

See also: mergable, merge, mergeable, merged, merging, submerge.

Word Frequency Rank

At #6,137 in frequency, this word belongs to advanced vocabulary. It's less common than core vocabulary but important for sophisticated expression.