DEFINITION OF MERGER * The definition of merger in general and in finance can be stated as follows:
In General,
"Merger is an absorption of one or more companies by a single existing company."
In Finance,
"Merger is an act or process of purchasing equity shares (ownership shares) of one or more companies by a single existing company." * The combination of one or more corporations, LLCs, or other business entities into a single business entity; the joining of two or more companies to achieve greater efficiencies of scale and productivity. * The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock.

MEANING OF MERGER
Before we understand, What is Merger? First, let's find out the simple meaning of an acquiring company and acquired companies.
Acquiring company is a single existing company that purchases the majority of equity shares of one or more companies.
Acquired companies are those companies that surrender the majority of their equity shares to an acquiring company.
Merger is a technique of business growth. It is not treated as a business combination.
Merger is done on a permanent basis. Generally, it is done between two companies. However, it can also be done among more than two companies.
During merger, an acquiring company and acquired companies come together to decide and execute a merger agreement between them.
After merger, acquiring company survives whereas acquired companies do not survive anymore, and they cease (stop) to exist.
Merger does not result in the formation of a new company. The management of acquiring company continues to lead (direct) the merger.

EXAMPLE OF MERGER
In the example, Company 'A' and Company 'B' are operating (existing) in the market. Company 'A' is an acquiring company, and Company 'B'