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ummary: Mergers and acquisitions involve one company joining forces with another, leading to changes like employee layoffs, business division redundancy, and restructuring of assets. Usually beneficial for the resulting company, mergers happen when two companies find mutual benefit in forming a united entity under a similar or new name. Acquisitions occur when a larger company purchases a smaller one. In a merger, both companies become a new entity, with their stocks merging into the new company.