Most Mergers Are Really Acquisitions
A merger combines two companies. The word is often used for transactions that are nothing of the sort.
A merger is the combination of two companies into one. The word does considerable diplomatic work: a genuine merger of equals is rare, and most deals described as mergers are acquisitions in which one company buys another. Calling it a merger softens the message for staff, customers and the acquired company's leadership.
- A combination of companies. *A proposed merger.*
- Merge — to combine. *The files merged.*
- Acquisition — one buying another. *A hostile acquisition.*
Word forms
| Form | Word | Example |
|---|---|---|
| Noun | merger | A bank merger. |
| Plural | mergers | Recent mergers. |
| Verb | merge | Merge the teams. |
| Past | merged | The firms merged. |
| Related | immerse | Immerse in water. |
How it is used in a sentence
- The merger was announced in March.Corporate finance.
- Merge into the traffic.Driving.
- Immerse comes from the same root.Latin *mergere*, to dip.
Kinds of corporate deal
- Merger of equals — genuine combination, rare in practice
- Acquisition — one company buys another
- Reverse takeover — a smaller company effectively acquires a larger one
- Hostile takeover — pursued against the target board's wishes
- Due diligence — the investigation before the deal completes
From *merge*, from Latin *mergere*, to dip or plunge — the same root as *immerse* and *submerge*.
Merger or acquisition?
A merger combines two companies into a new entity. An acquisition means one buys the other. Most deals called mergers are acquisitions.
Are merge and immerse related?
Yes. Both come from Latin *mergere*, meaning to dip or plunge into.