What is merger between companies ?

There is more than one strategy to enter the international market and the company has a new market to compete in, and one of these strategies is the merger strategy between companies

In light of the international competitive environment that began to appear with the emergence of the World Trade Organization and the liberalization of trade, the major international companies have become interested in the side of reducing the power of competition on the one hand, and working to increase material capabilities and human resources on the other hand; This is in order to increase production, reduce cost, improve quality, and achieve a lot of control in the local and global market after enhancing competitiveness.

Types of corporate mergers :

The most common terms used in this activity are merger, acquisition, and share purchase. The distinction between merger and acquisition is a technical one in terms of defining the nature of the financial transaction, whereby under the merger, one new company is formed in which two or more companies merge into one company, with the same objectives, programs and policies as it is. The case in some financial and banking companies in European countries, Japan and America.

As for under the acquisition, one of the companies buys one or more other companies, or some sections of these companies that are established as the main and controlling company, where the latter undertakes to pay all the financial and contractual dues to the company that is acquired, and there is another form of acquisition whereby one of the companies sells a percentage From the commercial activity of another company.

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