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A merger occurs when two distinct entities join forces to form a new, unified organization. This strategic decision allows the combined company to pool their resources, capitalize on their individual strengths, and leverage their expertise to create a stronger and more competitive business. Through a merger, companies can expand their market share, increase their bargaining power, and ultimately enhance their financial performance. It is a complex process that requires thorough analysis, careful planning, and effective communication to ensure a successful integration of two distinct entities into one cohesive entity.