Meaning & use
cash merger
Last updated
UK/ˈkæʃ ˌmɜːdʒə/
US/ˈkæʃ ˌmɜːrdʒər/
Meaning
nouncountablebusinessfinance
A merger in which the buying company pays cash to the target company's shareholders instead of giving them shares.
Grammar: Countable: 'a cash merger', 'two cash mergers'.
Patterns
- a cash merger with a company
- complete a cash merger
- announce a cash merger
The two firms agreed to a cash merger worth $2 billion.
In a cash merger, shareholders receive a fixed amount per share.
The board approved the cash merger after months of negotiation.
Word forms
| plural | cash mergers |
|---|
Common combinations
- a cash merger deal
- The cash merger deal closed last Friday.
- all-cash merger
- The all-cash merger gave shareholders immediate liquidity.
- cash merger agreement
- They signed the cash merger agreement in New York.
Synonyms and how they differ
- cash takeover
- Similar, but 'takeover' often implies a hostile acquisition, while 'merger' suggests agreement.
- cash acquisition
- A broader term; a cash merger is a specific legal structure.
Opposites
stock merger
Word family
Commonly confused: cash merger or stock merger?
cash merger vs stock merger
In a stock merger, shareholders get shares of the new company; in a cash merger, they get money.
Practice
What does a cash merger involve?
Choose one answer.
A cash merger means shareholders receive cash, not shares. Option 0 describes a stock merger.
Make it your own
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