A merger is a strategic decision where two or more companies combine to form a single entity. This can occur for various reasons, including expanding market reach, increasing operational efficiency, or enhancing competitive advantage.

Characteristics
– Combination of Entities: Two or more companies join to create a new organization.
– Shared Resources: Mergers often lead to shared resources, including technology, personnel, and capital.
– Strategic Alignment: The merging companies typically have complementary strengths that enhance their market position.
– Ownership Structure: Ownership is usually restructured, with shareholders of the merging companies receiving shares in the new entity.

Examples
– Disney and Pixar: In 2006, The Walt Disney Company merged with Pixar Animation Studios, combining their creative talents and resources to produce successful animated films.
– Exxon and Mobil: The merger of Exxon and Mobil in 1999 created one of the largest oil companies in the world, allowing for greater efficiency and market power.
– Kraft and Heinz: The merger between Kraft Foods and H.J. Heinz in 2015 formed a major player in the food and beverage industry, leveraging both companies’ strengths to expand their product offerings.