what is Conglomerate Merger

Posted on 13-05-2016        By ADMIN

what is Conglomerate Merger ?

Conglomerate Merger: These mergers involve firms engaged inunrelated type of activities i.e. the business of two companies are not relatedto each other horizontally nor vertically. In a pure conglomerate, there are noimportant common factors between the companies in production, marketing,research and development and technology. Conglomerate mergers are merger of different kinds of businesses underone flagship company. The purpose of merger remains utilization of financialresources enlarged debt capacity and also synergy of managerial functions. It doesnot have direct impact on acquisition of monopoly power and is thus favouredthroughout the world as a means of diversification.  

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