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Please explain the concept of Conglomerate Merger.

Please explain the concept of Conglomerate Merger.

Please explain the concept of Conglomerate Merger.

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Chiranjibi Chapagain Mar. 08, 2018

A conglomerate merger is a merger between firms that are involved in totally unrelated business activities. There are two types of conglomerate mergers: pure and mixed.

Merger is considered to be a process when two or more companies come together to expand their business operations. In such a case the deal gets finalized on friendly terms and both the organizations share profits in the newly created entity.  

Conglomerate merger happens in case of organizations that are unrelated to each other combine together. There are no linkages with respect to customer groups, customer functions and technologies being used. There are no important common factors between the organizations in production, marketing, research and development and technology. In practice, however, there is some degree of overlap in one or more of these factors.

Please explain the concept of Conglomerate Merger.

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