Question

Merger between ‘Larsen and Toubro (L & T)' with key business area in construction engineering and manufacturing critical equipments and 'Voltas Limited’, an Indian multinational electronics company specialized in manufacturing home appliances, whose business fields are totally unrelated, has taken place.

Identify and explain the type of merger between ‘Larsen and Toubro (L & T)' and ‘Voltas Limited’.

Answer 1

A merger between companies engaged in completely unrelated business operations is known as a conglomerate merger. Usually, these mergers take place between businesses in different sectors or between businesses in separate regions.