mergers involve the acquisition by one firm of another that produces products or services that are not directly related to those of the acquiring firm.

Question

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Conglomerate mergers involve the acquisition of a company that operates in a completely different industry, i.e. unrelated products or services. The goal of such mergers is usually to diversify the portfolio of the acquiring firm and reduce business risk.

Mergers Involve the Acquisition by One Firm of Another That