Company Merger

The Merger of Companies is a legal instrument applied when two or more organizations are merged, thus giving rise to a new entity.

Mergers allow companies to access the opportunity for development in the market, namely the following by example:

• Access to better production chains and suppliers;

• The reduction of costs.

Through the Merger of Companies, the vertical or horizontal concentration of operations occurs, giving rise to many market advantages.

The Merger of Companies enables you to reduce costs and make companies competitive in product distribution.

Mergers can allow the elimination of competition, generating a greater market share.

Difference between Merging Companies and Acquisition?

Merging Companies is a process developed by two or more organizations that unite their assets to create a new entity.

Usually Mergers are made with companies of similar size.

In the Acquisition of Companies, a larger company usually buys a smaller company and controls its assets in its entirety.

The main reasons that lead companies to Mergers and Acquisitions processes are:

• Demand for efficiency in production, producing more at a lower cost;

• The reduction of duplicate activities.

The Mergers and Acquisitions processes also allow companies to access new markets or improve their competitive position in the business sector.

Many companies also aim to gain a dominant or monopolistic position.