A MERGER between companies from unrelated sectors. Conglomerate mergers, which were popular during the 1960s and 1970s, have been relatively rare since many unsuccessful deals were dismantled in the 1980s. Academic and empirical evidence supports the idea that it is more efficient for an investor to hold a diversified PORTFOLIO of COMMON STOCKS, than for a company to merge with, or acquire, a diversified group of companies. See also HORIZONTAL MERGER, VERTICAL MERGER.
Link to This DefinitionDid you find this definition of CONGLOMERATE MERGER helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary