key term - Conglomerate merger

Definition

A conglomerate merger is a type of business combination where two or more companies operating in entirely different industries come together to form a single corporate entity. This strategic move is often pursued to diversify business operations and reduce risk exposure.

Related terms

Acquisition:

The process by which one company purchases most or all of another company's shares to gain control of that company.

Diversification:

A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single asset's performance on the overall portfolio.

Horizontal Merger:

A merger between two companies that operate in the same industry, often as competitors offering similar goods or services