Additionally, mergers and acquisitions can also considered illegal if the companies involved are large and if they have to go through, they have to undergo some checks by regulatory bodies to ensure that they are legitimate and that some companies will not end up being monopolies.
Mergers happen when two or more companies consolidate to become one while an acquisition is when a company buys another company such that the bought company ceases to be existent anymore and it is completely swallowed by the company that bought it. These actions can be a cause of concern for a government if a company dominates a particular industry thus limiting consumer varieties. As a matter of fact, the government of a state can decide to block such activities if they suspect foul play by any company whose intention is to dominate the market of an industry.
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