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What is a merger?why do companies merge?are we going to see it more often in the middle east?does it affect employees at either company?

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Question added by amer jayyousi , Business Development Consultant , freelance
Date Posted: 2013/11/21

Amer i have answered question on Merger and Takeover (Acquisition) as most of them mixed them but they vary in terms of management and also effect employees certainly because in case of acqisition a bigger company takes over a smaller one mostly and then Management decides to filter people if they think they dont contribute much.

Again same issue happens with new mergers where both companies tie up and merge into each other management and employees are effected as its a brand new begining under new management and new set of rules if some people dont like new rules and management they find different jobs so it surely effects

I am not sure on Middle East but in India it happens here big corporates take over companies like Kingfisher took over Deccan Airways and then last year it also went out of operations because Deccan Air employees dint find new management effective. Also there are mergers which took smaller companies to expansion. I guess it happens in Middle East as well.

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