MERGER

DEFINITION

• a combination of two things, especially companies, into one single firm.

EXAMPLES

• Lipton India and Brooke Bond
• Pixar-Disney merger
• Bank of Madura and with ICICI Bank

EXAMPLES

• Exxon and Mobil
• Sirius/XM radio merger
• Sears and Kmart

TYPES OF COMAPNY MERGER

• Horizontal merger
• Vertical merger
• Conglomerate
• Market extension merger
• Product extension merger

BENEFITS OF MERGER

• Increase in plant capacity
• Larger market share
• Reduction of financial risk
• Diversification of product

WHY DO MERGERS FAIL?

• Lack of communicatiom
• Lack of human integration
• Mismanagement of cultural issues