2007-02-21 04:47:16 · 4 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
Merger - to companies join together with no apparent major company - they usually form a new company. Some mergers have a major company in which case the minor company merges into the old. Think HP and Compaq. This is usually friendly in that the boards of both companies agree.
Acquisition - one company buys enough shares of the other in order to take over - or buy the company. Minor company subsumes into the major company. Not always friendly.
2007-02-21 04:53:44 · answer #1 · answered by Biz Guru 5 · 0⤊ 0⤋
A merger is a joint venture agreed upon by both businesses. An acquisition is when one party buys out and owns the new company.
2007-02-21 04:50:09 · answer #2 · answered by Obi-wan Kenobi 4 · 0⤊ 0⤋
basically a merger is the joining of two firms (supposedly equally) into the creation of one new firm. An acquisition is the buyout of one firm by another, in which the smaller firm is absorbed into the larger one.
2007-02-21 04:51:34 · answer #3 · answered by Crys H. 4 · 0⤊ 0⤋
I think an acquistion is when a business buys another business...like bank of america bought out mbna and it is still bank of america and a merger is when two companies come together to create a larger more profitable firm. Like sirius sattelite and xm radio did.
2007-02-21 04:50:47 · answer #4 · answered by jerseegal 2 · 0⤊ 0⤋