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When one company merges or acquires another, it signifies a union to form a single entity, often initiated due to mutual benefits. Mergers can lead to job losses, redundancy in divisions, and overall restructuring. Typically, mergers occur when both entities perceive advantages in joining forces. In cases where one company significantly overshadows the other, it often results in an acquisition, where the larger company purchases the smaller one. Following a merger, both companies' stocks combine into those of the new entity, reflecting the shared assets and identity of the merged companies. While mergers can bring uncertainties, they generally result in a stronger, unified company.
