LexBrew
Usage Entry 1155 / 1350 60-second read

Merger vs. Acquisition

Two firms fuse into one versus one firm buys another.

The comparisoni

✗ Wrong

The merger saw Disney buy Pixar outright.

✓ Correct

The acquisition saw Disney buy Pixar outright. (A merger is when two firms fuse equally.)

The ruleii

MERGER = fuse. ACQUISITION = buy.

A MERGER is two firms combining into one new entity, typically of similar size. An ACQUISITION is one firm buying another — the buyer survives with its own name. "M&A" bundles both, but the news calls every M&A a "merger" loosely.

Memory aidiii

Remember it like this

Mergers = equals. Acquisitions = one absorbs.

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