Oluwatobiloba Adenola Abeokuta, Nigeria 177 Questions 10 Answers 1 Best Answer 216 Points View Profile 0 Oluwatobiloba AdenolaLevel 2 Asked: March 11, 20202020-03-11T10:14:23+00:00 2020-03-11T10:14:23+00:00In: Business, Finance and Insurance Why would two companies merge? What major factors drive mergers and acquisitions? 0 Why would two companies merge? What major factors drive mergers and acquisitions? Share Facebook 1 Answer Voted Oldest Recent Ayomide 0 Questions 69 Answers 0 Best Answers 158 Points View Profile Ayomide Level 2 2020-04-01T16:34:56+00:00Added an answer on April 1, 2020 at 4:34 pm Two companies could merge for many reasons, but the most common reasons for any business combination are economic at their core. Here are some of the various economic reasons: Increased capabilities: Two companies can combine to leverage costly manufacturing operations, thereby allowing them to cut costs and have expanded research and development opportunities. Diversifying products or services: Another reason for merging companies is to complement a current product or service. Two firms may be able to combine their products or services to gain a competitive edge over others in the marketplace. For example, in 2008, HP bought EDS to strengthen the services side of their technology offerings (this deal was valued at about US$13.9 billion). 0 Reply Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer.