Definition
A merger is the combination of two companies to form a single new entity. In a merger of equals, both companies contribute relatively equally and shareholders of both receive shares in the new company. Most mergers involve an acquirer and target, with the target's shareholders receiving cash, acquirer stock, or a combination. Mergers aim to create synergies, increase market share, diversify, or achieve other strategic objectives. Regulatory approval may be required for large mergers.
Formula
Example
Company A offers to merge with Company B at a 30% premium to B's stock price. B shareholders can exchange each B share for 0.8 A shares. After shareholder approval and regulatory clearance, the companies combine.
FAQ
What is Merger?
The combination of two companies into a single entity.
How do you calculate Merger?
A common formula for Merger is: 换股比例 = 每股目标公司要约价 / 收购方股价
Why is Merger important?
Merger helps investors evaluate corporate actions and make more informed decisions.