The correct answer is MergersA merger is the combination of two firms, which subsequently form a new legal entity under the banner of one corporate name. Privatization occurs when a government-owned business, operation, or property becomes owned by a private, non-government party. -Privatization describes the process by which a piece of property or business goes from being owned by the government to being privately owned. It generally helps governments save money and increase efficiency, where private companies can move goods quicker and more efficiently. Critics of privatization suggest that basic services, such as education, shouldnt be subject to market forces. Additional InformationWays of PrivatisationGovernment companies are transformed into private companies in two ways. Transfer of ownershipGovernment companies can be converted into private companies in the following two ways:By the withdrawal of the government from the ownership and management of public sector companiesBy the outright sale of public sector companies. DisinvestmentPrivatisation of the public sector undertakings by selling off parts of the equity of PSUs to the private sector is known as disinvestment. The purpose of the sale is mainly to improve financial discipline and facilitate modernisation. However, there are six methods of privatisation. The public sale of sharesPublic auctionPublic tenderDirect negotiationsTransfer of control of enterprises that were controlled by the state or by municipalitiesLease with a right to purchase