Merger definition

A - B - C - D - E - F - G - H - I - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

When two or more companies decide to combine and become one entity, it is called a merger.

Mergers usually take the form of a stock swap between shareholders. Multiple listings on stock exchanges will have to form one listing, so shareholders in one firm are given securities in the other to compensate for the loss of their stock.

Although they are often referred to under the same heading of mergers and acquisitions (or M&A), mergers differ significantly from acquisitions. They are usually mutually agreed upon by – and end in a new company formed of – all the firms involved.

Mergers can arise for various different reasons

Visit our news and analysis section

Follow all the latest news on mergers on our news and analysis section.

Contact us

24 hours a day from 10am Saturday to Friday night at midnight.

010 344 0053

You can also email helpdesk.za@ig.com