Mergers & Acquisitions
For commercial reasons, a company may consider the options of mergers and acquisitions in order to expand its business. A merger happens when two or more separate companies reach an agreement that they would be combined into a new company. Normally, the companies involved in the merger transaction have either similar or complementary business, so that efficient resource allocation is usually achieved.
Acquisition means a company takes over another, such that the target company will become a part of and be replaced by the buyer company.