What is a Merger?
A merger refers to the combination of two companies to form a new, single entity. This decision is typically driven by mutual strategic interests, such as expanding market presence, achieving operational efficiencies, accessing new technologies, or strengthening competitive positioning.
What is an Acquisition?
In contrast, an acquisition involves one company purchasing all or part of another company’s shares. When the acquiring company obtains more than 50% of the shares, it gains control over management decisions. Companies pursue acquisitions to enter new markets, gain access to valuable assets or technologies, or eliminate competition.
How is a Merger and an acquisition similar?
While both a business merger and acquisition aim to create business value, they differ significantly in structure, control, and integration.
