Definition of Conglomerate Merger
Conglomerate merger is a merger of two totally unrelated businesses. These types of mergers happen usually for expansion. The expansion can be with respect to market or new geographical location. If the merger is between totally unrelated business entities with totally separate industries, the merger will be a pure conglomerate merger.
If the merger is between the two businesses that are going for product expansion or market expansion, then the merger is called a mixed conglomerate merger. There are fewer conglomerate mergers that are successfully working in their core areas. Many experts say that this is not a good option of expansion rather it is a good way or diversification.