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How deals happen

Merger of equals

Two similarly-sized companies combine into one — genuinely different from an acquisition, and often confused with it.

Step 1 of 6

Meet the players

Two companies of similar size — unlike an acquisition, neither is clearly the buyer or the target.

This is a simplified illustration of how a merger of equals typically works, not a description of any specific real transaction — real deals vary in structure. For real examples, read the daily issues.