consolidate vs merge


Senior Member
USA English - Midwest
Is there a difference? Had an international student studying for his MBA ask what the difference was. Says he read about a Canadian company "GWG" that consolidated, and THEN merged a few years later (?).

Can anyone give me an answer to pass on to him?

  • bibliolept

    Senior Member
    AE, Español
    "Merged" suggests two separate companies joining to become a single company. "Consolidation" suggests streamlining, downsizing, selling some branches of the company...

    The context would make it possible to determine if this is what is meant.


    Senior Member
    India-Local dialect
    I agree with Bibliolept. Consolidation refers to the bringing together of actions or activities or departments under one single direction, which would otherwise go in separate ways. When consolidation is done, the organization becomes more effective and productive.


    Senior Member
    USA English - Midwest
    Thanks for both of your responses. However, it's still not to clear to me. Pidginboy - are you saying that two companies (Company A & B) both have a similar department (I don't know....let's say, a Human Resources Dept), and in order for both companies to save costs, they will share one single HR Dept?

    Not sure I get it.... Can you use an example? Either fake or real?

    Appreciate the input from both of you.

    Terry Morti

    Senior Member
    Two completely separate companies can merge.

    But a single company that operates on two different sites, might be said to consolidate if it sells off one of its sites and concentrates all of its activities at the other.

    Or a company that has a broad range of products in its portfolio, might be said to consolidate it if decides to concentrate on putting greater effort into developing fewer, but core, brands or products.
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