Merger

Mergers are corporate strategies of combining companies to one for enhancing their operational and financial strength. The mergers are agreements entered between two or more companies to come together to form a new company. The agreement involves the transfer of ownership either by a stock swap or cash payments between the two companies. Horizontal mergers happen between the two companies in the same industry while vertical mergers happen between the two companies in the same industry value chain as the supplier, distributor, manufacturer, among others. Mergers are done for many reasons and more importantly, to expand into new segments and to increase market share.