Thursday, December 23, 2010

What is a merger ?

What Does Merger Mean?

The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock.

It also means that the two companies will stop existing and a new entity (merged) will come into existence.
The formation of ArcelorMittal is an example of a merger. Arcelor and Mittal existence came to an end and a new entity called ArcelorMittal was born.