It can be argued that there are no economic benefits to shareholders from a conglomerate merger.

Question

Quizplus · Accepted Answer

Conglomerate mergers typically do not result in economic benefits for shareholders as the diversification of the merged companies' businesses may lead to complexity and inefficiencies, which can negatively affect profitability and stock prices. Additionally, the synergy and cost savings that are typically found in mergers between companies in the same industry may not exist in conglomerate mergers.

It Can Be Argued That There Are No Economic Benefits