DEFINE THE FOLLOWING TERMS:

Merger
Voluntary amalgamation of two firms on roughly equal terms into
one new legal entity. Mergers are effected by exchange of the
pre-merger stock (shares) for the stock of the new firm. Owners
of each pre-merger firm continue as owners, and the resources of
the merging entities are pooled for the benefit of the new entity.
If the merged entities were competitors, the merger is called
horizontal integration, if they were supplier or customer of one
another, it is called vertical integration.
Acquisition
An acquisition is a corporate action in which a company buys
most, if not all, of another firm's ownership stakes to assume
control of it. An acquisition occurs when a buying company
obtains more than 50% ownership in a target company. As part
of the exchange, the acquiring company often purchases the
target company's stock and other assets, which allows the
acquiring company to make decisions regarding the newly
acquired assets without the approval of the target companys
shareholders. Acquisitions can be paid for in cash, in the
acquiring company's stock or a combination of both.
Divestiture
Selling of, or otherwise disposal of, a firm's assets to achieve a
desired objective, such as greater liquidity or reduced debt
burden. In accounting, divestiture transactions are recorded as a
one time, non-recurring gain or loss.
Conglomerate
Large corporation run as a single business, but made up of
several firms (acquired through mergers or takeovers) supplying
diverse goods and/or services.
Subsidiary
An enterprise controlled by another (called the parent) through
the ownership of greater than 50 percent of its voting stock.
Parent Company
Firm that owns or controls other firms (called subsidiaries) which
are legal entities in their own right. Also called parent
corporation.
EXAMPLES:
Merger
Insular Rural Bank Inc. and Filipino Savers Bank Inc.
 BPI Direct Savings Bank Inc. has merged with BPI Globe BanKO
Inc., A Savings Bank to form BPI Direct BanKO Inc., A Savings
Bank. Effective date of merger was December 29, 2016.
Acquisition
BPI's acquisition of ING Investment Management Philippines
San Miguel buys into PAL, Air Philippines
Divestiture
Thomas Reuters Corporation, a multinational mass media and
information company based in Canada, sold its intellectual
property and sciences (IP&S) division. Thomas Reuters initiated
the divestiture because it wanted to reduce the amount of
leverage on its balance sheet.
Cisco IT recently completed a TrustSec project to assist in the
divestiture of CPE business to Technicolor which was announced
in July, 2015.
Conglomerate
General Electric Company was one of the largest conglomerates
in the world, with a turnover of nearly $150 billion in fiscal year
2005. The company had interests in several areas, broadly
classified into six core business units covering industrial systems,
infrastructure, media, healthcare, consumer finance and
commercial finance.
The Tata group has been credited for aggressively pursuing
several corporate social responsibility (CSR) initiatives in India.
The case describes the vision and mission of Tata group which
places importance on CSR. It then examines how the group's
vision is translated into action through the various community
development initiatives.
Subsidiary and Parent company
PARENT COMPANY: Dell
SUBSIDIARY COMPANIES:
ALIENWARE
MOZY
DELL PRODUCTS
STATSOFT
EQUALLOGIC
PARENT COMPANY: San Miguel Corporation
SUBSIDIARY COMPANIES:
 Magnolia chicken
Red Horse beer
Bank of commerce
Petron corp
REFERENCE/S:
http://www.mbda.gov/blogger/mergers-and-acquisitions/5-types-
company-mergers
http://www.banksphilippines.com/2014/08/bank-mergers-in-
philippines-2014-2013.html
https://www.bpiassetmanagement.com/posts/in-the-news/bpis-
acquisition-of-ing-investment-management-philippines-completed/
http://business.inquirer.net/52433/lucio-tan-smc-ink-pal-buy-in-deal
http://www.sanmiguel.com.ph/