A merger and an acquisition both result in the combination of two companies into a single entity, but there are some key differences. A merger is typically a combination of two equal partners, while an acquisition is the takeover of one company by another.
With a merger, the resulting company typically has a new name and a new corporate identity.
An acquisition occurs when one company buys another company and assumes control of its operations. In that case, the acquired company often becomes a subsidiary of the acquiring company and the acquiring company gains control over the subsidiary’s operations, management and assets. The acquired company often retains its original name and brand.