What is a merger?

A merger is a combination of two entities as a new legal entity under one name. Typically, mergers occur with businesses of comparable size.

The merger formed a new company. Shares of the new company were issued to the shareholders of both original companies. The benefits of a merger transaction include increased market share, efficiencies in operation and expansion in geography and/or markets.

A recent example was the 2016 merger between H. J. Heinz Co. and Kraft Foods Group. This merger created the Kraft Heinz Company, which has access to additional capital and distribution efficiencies. For support and additional information, explore our Capital Markets Transactions solutions