Congeneric Merger

Just as a generic drug is supposed to be the same as the one it's copying, in a congeneric merger two companies have something...in common. They might be in the same industry with similar distribution channels, even though they don’t sell the exact same type of product or service.

For example, an airline might acquire a hotel chain, or a newspaper could merge with a radio station. This way, the acquiring company might gain increased market share (called a market extension merger) or an expanded product line (a product extension merger).

The opposite of a congeneric merger is a conglomerate merger, where the two companies have nothing in common. Kind of like most arranged marriages. But in either a congeneric or a conglomerate merger, it's always a challenge to combine two different company cultures and internal processes.

So someday, when Apple buys Facebook, you can say, “That’s a congeneric merger!”