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A merger is a voluntary combining of two companies legally into one legal entity. The companies should have similar sizes, values and customer bases to be a merger and not an acquisition. If both parties expect to benefit from the merger, it qualifies as a “merger of equals.” Successful mergers can accomplish a variety of results. Merged companies often gain market share, reduce manufacturing costs, expand to new locations, increase revenues, and combine production of common products. All of these results will directly benefit the shareholders of the new company. After the merger, the shares of the new company are distributed to the original shareholders of the previous company