Merger Arbitrage

Corporate Finance Mergers and Acquisitions Financial Terms Dictionary

Contents

Merger arbitrage is an investment strategy in which an investor simultaneously buys shares in merging companies.

Merger arbitrage exploits market inefficiencies associated with mergers and acquisitions.
Merger arbitrage, also known as risk arbitrage, is a subset of event-based investing or trading that involves exploiting market inefficiencies before or after a merger or acquisition.