The major objective of corporate mergers is to enhance economies of scale. Corporate mergers involve the combining of two or more companies to create a larger and more efficient company. This larger company can take advantage of economies of scale, which are the cost savings that come from increased production and efficiency.
By combining their resources, the merged company can reduce costs by eliminating duplicate operations, reducing overhead, and achieving greater bargaining power with suppliers. This increased efficiency can lead to higher profits and better competitiveness in the marketplace.
The objective of enhancing economies of scale through corporate mergers is also closely tied to profit maximization. By reducing costs and increasing efficiency, the merged company can increase its profits and improve its financial position.
Therefore, the major objective of corporate mergers is to enhance economies of scale, which can lead to cost savings, increased efficiency, and ultimately, higher profits.