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Several other reasons for mergers are as follows: Enhancing company productivity. There is also a general tendency that the merged companies would monopolize the market, thereby ousting others. Political factors. Cutting down expenses and increasing revenues.What are some benefits of a merger?
Benefits of Mergers. A merger occurs when two firms join together to form one. The new firm will have an increased market share, which helps the firm gain economies of scale and become more profitable. The merger will also reduce competition and could lead to higher prices for consumers.What does a merger mean for a company?
What is a 'Merger'. A merger is an agreement that unites two existing companies into one new company. There are several types of mergers and also several reasons why companies complete mergers. Mergers and acquisitions are commonly done to expand a company’s reach, expand into new segments, or gain market share.