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A merger happens - when two or more companies come together to form a new, single company. It's a strategic move where they combine their operations, assets, and resources. Usually, the companies involved have different strengths that complement each other. The goal of the merger is to create a bigger and more competitive entity.

On the other side, a demerger happens when a company strategically splits into two or more independent entities. This happens when a company wants to concentrate on a certain business line or divisions, simplify its operations, or establish separate entities for different business segments.