Conglomerate Merger  

Definition of Conglomerate Merger

A conglomerate merger occurs when 2 firms in completely different sectors of the market join together. For example EMI and Microsoft

A conglomerate merger may be undertaken to reduce riskiness and enable a more powerful company but, mostly economies of scale are fairly limited.

A conglomerate merger may occur between a firm in an old industry and a new developing industry (e.g. old media and new media internet)

 

 

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