... or all of their debts, these debts will be taken over by the merging company. The advantages of mergers include producing economies of scale, which reduces unit costs, gaining many competitive advantages. There will be a greater market share for horizontal integration, which means the business can often charge higher prices for its own benefit. Merging often reduces competition if a rival is taken over by another firm. Another advantage of mergers would be the fact that other businesses can bring new skills and specialist departments to the business. It is also much easier to raise finance within the business if it is larger. Another major advantage is that a merger would give a company the opportunity to expand by establishing their presence in a host country, freely inviting the merged company to compete in other markets. The disadvantages of mergers may follow with the business becoming too large, as it may ...

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