What does merger mean?
A merger is a combination of previously separate people, organizations, companies, or other entities into one larger whole. The word is especially common in business and financial reporting, where it can refer either to the legal agreement that brings companies together or to the resulting company. A merger may be voluntary, with the parties agreeing to combine, or it may follow a takeover. Beyond business, the word can describe the joining of smaller groups, such as two departments, political parties, or community organizations. Its general connotation is consolidation and integration, although a merger can also imply that smaller entities lose some of their independence. The related verb, merge, describes the act of joining, while the noun is especially associated with formal organizational and commercial combinations.
nounA merger is the act or process of combining two or more people, organizations, or businesses into a single entity. It can also refer to the resulting combined organization or arrangement.
- A combination of two or more people, organizations, or businesses into a single entity.
- The process or result of combining separate entities; also, a combined organization or arrangement.
"The two companies announced a merger that would create a larger international business."
"The merger is expected to create thousands of jobs across the region."
"After the merger, the two departments were reorganized into one larger unit."
The plural is mergers.
"Several mergers were announced during the financial year."
A merger turns two separate organizations into one—and can reshape entire industries in the process.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does merger come from?
The word merger was formed in English with the suffix -er from the verb merge. Merge comes through Old French merger from Latin mergere, meaning “to plunge, immerse, or sink into,” and by extension “to combine.” Related English words such as immerse, immersion, submerged, and emerge share the same Latin root. The business sense developed in the modern commercial era as a specialized term for the combining of companies or other organizations.
Related word forms
How merger is actually used
The term is commonly used in business, finance, law, and politics. In corporate contexts, it often describes a formal combination in which participating organizations become part of one entity, although the precise legal meaning varies by jurisdiction.