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Difference between merger and takeover

Updated: 9/11/2023
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In a merger, two or more companies of relitively similar size etc come together to form a larger company or conglomerate. It is often accopanied by a transition period and a rebranding exercise as the companies combine In a takeover, a larger company will absorb a weaker company. This weaker company is often struggling financially and will almost certainly be smaller than the company doing the takeover. The smaller company will effectively disappear although staff may be kept on in a similar roll to their previous jobs.

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Q: Difference between merger and takeover
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What is difference between a merger and takeover?

Takeover means buying the controlling percentage of shares of the target company. Merger means the purchase of one company by another company.


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