Consolidative (Consolidation) Merger

A merger occurring in an industry with a large number of competitors and relatively static revenue growth. Because of the effect of competition law, absent special treatment by the authorities, a consolidative merger is unlikely to create any value other than benefits-of-scale (i.e., better bargaining power for inputs and elimination of some management duplication). Contrast with diversifying merger, complementary merger, expansive merger, synergistic merger and conglomerate merger.

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