Disadvantages/demerits of merging of firms

1. It leads to over exploitation of resources.
2. It increases pollution due to the existence of the industry.
3. It leads to congestion of firms within the industry.
4. It leads to over production due to large scale production hence wastage of resources.
5. It leads to price fluctuations due to over production.
6. It leads to loss of independence of individual firms
7. It increases complexity iii management due to large scale operation.
8. It leads to emergency of collusive monopoly and its associated negative implications

9.   It leads to unemployment in firms when the firms use capital intensive techniques of production.