What is the difference between a merger and an acquisition?
Answer (1)
Answer:The difference between a merger and an acquisition lies in how the two companies combine and the level of control involved:1. Merger – This occurs when two companies of relatively equal size and influence come together to form a new entity. In a merger, both companies mutually agree to combine, and they typically share resources, management, and operations. The original companies may cease to exist, creating a completely new organization.Example: Exxon and Mobil merged to form ExxonMobil in 1999.2. Acquisition – This happens when one company purchases another, either by buying a majority stake or acquiring its assets. The acquired company typically loses its independence and becomes part of the acquiring company. Acquisitions can be friendly (mutually agreed upon) or hostile (one company takes over another without its consent).Example: Facebook’s acquisition of Instagram in 2012.
