Conglomerate Merger

Business, Legal & Accounting Glossary

Definition: Conglomerate Merger


Conglomerate Merger

Quick Summary of Conglomerate Merger


A merger of two companies which are involved in different types of business. There are many ways for this to benefit the companies, such as sharing of assets and reducing business risk, but can also become a risk to the company if the new company gets too large or if it isn’t able to successfully blend the two businesses.




Full Definition of Conglomerate Merger


A conglomerate merger occurs when two or more companies from strategically distinct business segments merge. There are two types of conglomerate mergers: pure and hybrid. The merging firms in a pure conglomerate merger have nothing in common and are just aiming to develop into new business areas. The participants in a mixed conglomerate merger are attempting to extend their product lines or target markets.

The goals of a conglomerate merger are similar to those of most other mergers: interested firms want to reduce their market risk exposure while potentially profiting on effective synergies, growing market share, and cross-selling. However, especially in pure conglomerate mergers, involved enterprises must ensure that the merger makes sense and that there are chances for growth. Firms must also guarantee that the conglomerate does not become too large to the point that the organization’s purpose and mission are lost.


Related Phrases


Add-On Acquisition
Bolt-on Acquisition
Mergers and Acquisitions
Synergistic Buyer


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Definition Sources


Definitions for Conglomerate Merger are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th January, 2022 | 0 Views.