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Definition

Conglomerate merger

Conglomerate merger is the merger of two different organizations competing in different market.  It occurs when one company merges with another but the two companies have no competitive or buyer-seller relationship.


Conglomerate merger occurs when ne firm buys other firms that make unrelated products.

To expand profitably is the main goal of a conglomerate merger. Another purpose of combining unlike firms is to diversify operations and thus vary sources of income for the parent company. Conglomarates avoid putting all their corporate eggs in one industrial basket.

 

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