Merger

Merger Meaning:
The buying of one company by another and the subsequent ‘merging’ of the two companies into one. While ‘merger’ suggests the coming together of equals, it’s much more often the case that a larger company acquires a smaller one, but then allows the smaller company to call the deal a merger rather than an acquisition, which may be unpalatable to employees and shareholders.

Merger Example:
The company GlaxoSmithKline was formed in 1999 by the merger of Glaxo Wellcome and SmithKline Beecham, which were in turn formed by earlier mergers or acquisitions between Wellcome PLC, Glaxo PLC, Beecham PLC and SmithKlineBeckman Corporation.