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1. Shiver katal
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2. Merger
 A merger refers to a combination of two or more
companies, usually of not greatly disparate size, into
one company.
 A merger involves the mutual decision of two
companies to combine and become one entity; it can
be seen as a decision made by two "equals".
 Merger refers to a situation when two or more existing
firms combine together and
form a new entity.

3. Types of Merger
Horizontal Merger
 Horizontal mergers are those mergers where the
companies manufacturing similar kinds of
commodities or running similar type of businesses
merge with each other.

4. Examples of horizontal merger
 Lipton India and Brooke Bond.
 Bank of Madura with ICICI Bank.
 BSES Ltd with Orissa Power Supply Company.
 Associated Cement Companies Ltd with Damodar
Cement.

5. Vertical Merger
 A merger between two companies producing different
goods or services
 Examples:-
 Time Warner cable operation- Turner Corporation
 Pixar-Disney Merger

6. CONGLOMERATE MERGER
 Conglomerate mergers take place when the two firms
operate in different industries.
Types of conglomerate mergers:
1.Pure conglomerate mergers involve firms with nothing in
common.
2. Mixed conglomerate mergers involve firms that are
looking for product extensions or market extensions.

7. Example
 Walt Disney Company and the American Broadcasting
Company.

8. Amalgamation
 Amalgamation signifies the transfers of all are some
part of assets and liabilities of one or more than one
existing company or two or more companies to a new
company.

9. Acquisition
 When one company takes over another and clearly
established itself as the new owner, the purchase is called
an acquisition.
 Acquisition is generally considered negative in nature

10. Acquisitions

11. Importance of merger
 Growth and diversification
 Synergy
 Fund raising
 Increased managerial skill/technology
 Tax consideration
 Increased ownership liquidity
 Defense against takeovers

12. Challenges to mergers