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But the second type can also fail quite miserably. Daimler-Chrysler, Kmart-Sears, Sprint-Nextel...

• charlesdm 11y ago
  Sure. But if it works, it's amazing for the shareholders. Just look at Anheuser-Busch Inbev (and their history of merging/consolidating) and their soon to be merger with SABMiller.
  • dkhenry 11y ago
    And if you don't have the appetite to risk the merged company, the reduction in competition will spill over into other firms. So if you see a marketplace consolidating and you think the reason is to decrease competition, then buy one of the remaining independent firms.
• obsurveyor 11y ago
  In my opinion, that's a third type of merger: When two ailing companies merge to try to save each other. Best avoided as well.