Conglomerate Mergers

Conglomerate mergers occur when two companies from different industries come together. This type of merger is usually pursued to diversify a company's operations, reduce risk, and expand market reach. For example, if a tech company merges with a food company, they can share resources, innovate, and enter new markets. The goal is often to create a more robust business model that can withstand economic changes by not relying on a single industry. This strategy can lead to greater financial stability and opportunities for growth.