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When companies consider merging, it signifies a collaboration to form a united entity, often deemed mutually beneficial. Mergers can lead to employee layoffs and departmental redundancies due to restructuring. Publicly traded companies experience changes in their stock dynamics; in a merger, both companies' stocks combine into a new entity's stock. If one company is significantly larger, the process is typically referred to as an acquisition, where the larger company buys the smaller one. Overall, while mergers can introduce uncertainties, they often result in benefits for the newly formed company.