Mergers and acquisitions are two types of corporate transactions that can occur between companies.

• 1

  Merge is a process in which two or more companies combine into one new company with the aim of increasing economic efficiency, competitiveness, and business expansion. Usually, in the case of a merger, companies retain their independence and combine resources and management processes.

• 2

  Acquisition is a process in which one company (acquisitor) acquires control over another company (target company) by transferring control over the shares or business of the target company. As a result of the acquisition, the target company can become a subsidiary or branch of the acquiring company.

Both of these types of transactions can be used by companies to improve their financial position, implement strategic goals, and expand markets and resources.