Final answer:
A corporate merger is a process where two formerly independent businesses combine to form a new singular entity, which includes acquisitions and lateral mergers. It often leads to consolidation within the combined firm and is regulated by antitrust laws to maintain market competition.
Step-by-step explanation:
A corporate merger refers to a corporate restructuring that occurs when two formerly independent business entities combine to form a new organization. This can occur in various forms, such as when one firm acquires another firm, which may retain its former company name, reflecting that various types of mergers and acquisitions broadly lead to a unified control over the previously separate firms. Although the terms merger and acquisition may indicate different legal structures, both result in a combined entity intended to maximize efficiencies and market power. Of particular note are lateral mergers, where entities of similar sizes and market presence combine to form a larger, more competitive firm.
In addition, it's important to consider that with mergers and acquisitions, there can be an overlap in services, such as multiple accounting or sales departments within the merging entities, which typically leads to a consolidation and often a downsizing to eliminate redundancies. Furthermore, antitrust laws have a significant role in the regulation of mergers to prevent the formation of monopolies and maintain competitive markets.