Mergers and acquisitions combine companies for growth. Merger forms a new entity, while acquisition is one company buying another. Example: Vodafone-Idea merger
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Mergers and Acquisitions (M&A):
Mergers and acquisitions are business strategies where companies combine or one company buys another to grow, enter new markets, or gain efficiency.
Merger: Two companies agree to join and form a new entity.
Example: Vodafone India and Idea Cellular merged in 2018 to create Vodafone Idea Ltd, becoming India’s largest telecom operator at that time.
Acquisition: One company buys another and takes control.
Example: Facebook acquired WhatsApp in 2014 for $19 billion, helping Facebook expand into messaging services worldwide.
M&A often aim to reduce competition, increase market share, or achieve cost savings through synergy.
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