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Capital mergers involve the consolidation of two or more companies through a financial transaction, typically involving the combination of assets, liabilities, and ownership interests. This process often results in the creation of a new, larger entity with increased capital resources and market power. Capital mergers can take various forms, including mergers of equals, acquisitions, and leveraged buyouts, and are commonly pursued as a strategic growth or restructuring initiative by businesses seeking to achieve economies of scale, diversify product offerings, or enter new markets.