One reason given to justify a conglomerate merger is the desire to diversify into new markets,thus reducing the risk associated with adverse conditions in any single market.

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One of the main justifications for a conglomerate merger is to diversify into new markets, which can help reduce risk by spreading it across multiple industries or segments. This can be particularly important in industries that are heavily affected by economic or market fluctuations, where exposure to a single market can be risky. By entering new markets, a conglomerate can also find opportunities for growth and expansion, which can help drive long-term profitability and success.

One Reason Given to Justify a Conglomerate Merger Is the Desire