Definition:Merging (or merger) is the process in which two or more businesses combine to form one single business organization.
Why do businesses merge?
To grow bigger.
To reduce competition.
To increase profits.
To share resources and technology.
To reach more customers.
🔹 Types of Merging
1. Horizontal Merger
Two companies doing the same type of business join together.
Example: Two clothing companies combine.
2. Vertical Merger
Companies at different stages of production or distribution join.
Example: A shoe manufacturer merges with a leather supplier.
3. Conglomerate Merger
Companies from completely different businesses merge.
Example: A food company merges with an electronics company.
4. Market Extension Merger
Similar products, but companies operate in different markets or regions.
Example: A bakery in Kerala merges with a bakery chain from Delhi.
5. Product Extension Merger
Companies sell related but different products to the same customers.
Example: A mobile phone company merges with a headphone company.
Examples of merge
Vodafone Idea Limited
Vodafone India + Idea Cellular
Formed the telecom company Vi.
ExxonMobil
Exxon + Mobil
Two large oil companies combined into one.
Disney and Pixar
Disney acquired and integrated Pixar, often discussed alongside major corporate combinations.
DowDuPont
Dow Chemical + DuPont
They merged to create DowDuPont.
Those are not a merge and why
Nike × Louis Vuitton
Meta × Ray-Ban
Apple × Nike
why
Because they stay as two separate companies. If two companies become one, it is a merger.