Skip main navigation

Barclays uses cookies on this website. They help us to know a little bit about how you use our website, which improves the browsing experience– both for you and for others. They are stored locally on your computer or mobile device. To accept cookies, continue to use the website. Alternatively, go to the cookies policy for more information on how to disable cookies.

Question

What is a Merger?

Answer

A merger occurs when two or more companies decide join together to make a new company. Both companies will be of similar size so that one does not dominate the other when combined. Existing stockholders of both companies involved retain a shared interest in the newly formed company. This is a mandatory corporate action, which means once approved, event will take place regardless of your participation. The amount of shares you will receive in the new company usually reflect the value of the new company, compared to that of the two old companies. A merger will often initially cause the new companys share price to rise.

How helpful was this answer?

Not at all Very helpful