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Do mergers create wealth?

Do mergers create wealth?

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Answer - Mergers are often the way in which the companies come together to form a single entity . This often results in the positive results. The enhancement in productivity , increase in the physical and financial resources lead to the benefits coming from the mergers. The shareholders often see the rise in their earnings as a result the merger. The mergers lead to the increase in the existing wealth and also the creation of new wealth after the mergers . They are an effective tool to improve the performance of the company and to increase the shareholder gains.

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