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Merger – Walgreens & Rite-aid

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Merger – Walgreens & Rite-aid

Category: Coursework

Subcategory: Economics

Level: College

Pages: 3

Words: 825

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Merger – Walgreens and Rite-aid A merger is the coming together of two companies to form one. This mostly occurs when two competing companies join forces and bring together their resources to form one company. The formation of a new company means there is also the formation of a new name for it. Most mergers opt to join their names to avoid losing their clients and reputation, while still trying to gain more clients from the merge. There are many different types of mergers. There is the horizontal merger, where two competitors join forces and become one. There is the vertical merger, where those who depend on each other, like a customer and company, come together. There is also conglomeration. This is the type of merger where unrelated companies come together to form one.
These forms of mergers are mostly formed to benefits these companies in different ways. There is increasing the profit by reducing the cost of running the company. This means reducing a number of the employee who share a common field from both companies. There is also the gaining or improving the form of technology available. By merging the different technologies to keep up with the competition and still offer the required products and services. Mergers are also important in creating and broadening the available market for products and goods being offered by the two companies.
In the case of Walgreen and Rite Aid, the two of USA’s second and t…

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