Question

Which of the following is an example of a conglomerate merger?
a. The purchase of TWA by American Airlines
b. The purchase of Malone's Cost-Plus Supermarkets by the Kroger supermarket chain
c. The purchase of Gulf Oil by Standard Oil Company of California
d. The merger of Sprint and Nextel
e. The purchase of Duracell Batteries by Berkshire Hathaway

Answer 1

Answer:

Answer d

Explanation:

Mergers and acquisitions from legal point of view differ in a way that acquisition happens when entity takes ownership of another entity's stock, equity interest or assets, while merger is a consolidation of two entities into one. Except for answer d, all other examples are purchases of another company's stocks or assets. Acquisition therefore means takeover of a company by another company, while a merger usually means consolidation of two companies into one based on mutual agreement and with one management