Definition - What does Merger mean?

A merger is when two entities come together. Typically, the smaller entity is absorbed by the larger entity in such cases. In the context of law, the term "merger" refers to a number of circumstances where something smaller is absorbed by something bigger. For example, in corporate law, a merger is when a smaller company is absorbed by a larger company.

Justipedia explains Merger

When a merger happens between two corporations, the complete assets and liabilities are taken over by the larger company, or the company that is doing the absorbing. Estates can also undergo mergers; in an estate merger, a smaller estate can be absorbed by a larger estate. Mergers can also take place in criminal law, when smaller charges are absorbed by larger charges. No matter what area of law the term "merger" is being used in, it typically represents the coming together of a smaller entity and a larger entity.

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