Merger The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock. Investopedia Says: Basically, when two companies become one. This decision is usually mutual between both firms. Related Terms: Acquisition Acquisition Premium Demerger Forward Triangular Merger Hostile Takeover Merger Securities Reverse Triangular Merger Sweetheart Deal Target Firm Whitewash Resolution |