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FREQUENTLY ASKED IN FINANCE INTERVIEW – Why would two companies merge?
What major factors drive mergers and acquisitions?
Answers : Mergers and acquisitions all have one underlying motive: to protect or improve the strength and/or profitability of the dominant company. There are major factors that drive mergers and acquisitions. One of the main reasons why companies merge or acquire other companies is to create a synergy (cost savings). Likewise another reason is diversification and to reduce cost of production, and thereby maximize profit. Similarly, Companies merge for the purpose of eliminating competition, and gaining a larger market share.
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source http://www.tanzania.jobsportal-career.com/2018/07/24/frequently-asked-in-finance-interview-why-would-two-companies-merge/