English Vocabulary

merger vs consolidation

Who would accept to explain the difference between a merger and a consolidation of companies?

I know one can also consolidate some departments in a company but I don't know whether one could merge them.



  • As far as I am qualified to give my two cents, the two words in the business context work similarly. I guess that if you are rigourous in using terms, you could make out merger from consolidation according to the origin of words.

    MERGER (from v. to merge, originally to plunge into something; see immerge, immerse.) is first up the "absorption" by a corporation of one or more others. Absorption.

    CONSOLIDATION (from to consolidate, to make solid) is rather the unification of two or more corporations by dissoluting the existing ones to create a single new one. Amalgamation.

    Is merger used for departments inside a corporation? I dunno. If there anyone out there, a tycoon or a student in economy, who would be so kind as to tell how it goes in business, we would be very thankful.
  • Two or more corporations can be merged.
    The accounts of these corporations are then consolidated.

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