The result of two firms combining to form one company is called a?

The result of two firms combining to form one company is called a merger. A merger is a legal consolidation of two or more existing companies into one new company. The new company inherits the assets and liabilities of the merging companies, and the shareholders of the merging companies become shareholders of the new company. Mergers can be either friendly or hostile. A friendly merger is one in which the boards of directors of the merging companies agree to the merger and recommend it to their shareholders. A hostile merger is one in which the board of directors of one company does not agree to the merger and tries to prevent it from happening.