Comparing/Contrasting between a Merger & an Acquisition

Merger and acquisition are often thought to have the same meaning; however there is a difference between them. If two or more corporations join and form a single enterprise, this is known as a merger. For example, the 2002 merger of Hewlett-Packard and Compaq Computer was a horizontal merger. An acquisition is when one company takes ownership and control over another company. The company being acquired will no longer exist.  An example of a major acquisition is Manulife Financial Corporation's 2004 acquisition of John Hancock Financial Services Inc. The words merger and acquisition do differ in business, although individuals tend to use them interchangeably.