Branding mergers and acquisitions:
— The stronger brand takes over
When several brands merge into one, the key question is which brand will prevail. Very often, the cleanest branding decision is to back the strongest horse. That is, the brand that enjoys the strongest market position and greatest brand equity. One brand leads, the others follow. But how much change, if any, does the parent brand itself require?
Scenario 1: Absorption with no change to the parent brand
In its simplest form, this strategy is about total absorption. The other brands disappear and the parent brand continues unchanged. No renaming. No visual refresh. Sometimes not even a transitional phase.
This works best when there’s a clear brand equity gap. The stronger brand already owns mental availability, category associations and trust. The acquired brand adds business value (such as products, infrastructure, people or technology) but its name brings limited strategic advantage or would hinder the business ambitions of the acquiring brand.
A classic, already historic, example in Belgium is Carrefour’s acquisition of the GB Group. Despite GB being a household name, Carrefour progressively rebranded all GB stores under its own formats. The goal was clear: one unified brand, lower complexity, stronger scale and a clearer competitive position against players like Delhaize.
Full absorption works best when:
- The acquired brand has low or declining recognition
- The stronger brand’s equity is a critical asset
- The market and the business benefit from consolidation under one clear leader
Scenario 2: Absorption with brand evolution
A merger or acquisition can also be used as a moment for renewal. One brand still absorbs the other, but the parent brand uses the transition to refresh its identity, signalling a new chapter, a broader purpose or a strategic shift. This approach makes sense when the stronger brand is solid but its identity no longer reflects the ambitions.
Take Total’s transformation into TotalEnergies. Following acquisitions that allowed for the company’s expansion beyond oil and gas, Total updated its name, identity and purpose to reflect this significant strategic move, without sacrificing the equity of the Total brand.
A post-merger refresh is relevant when:
- The brand needs modernisation
- The acquisition reflects a changing strategic direction
- Leadership wants to re-energise internal culture
- The transition requires a clear public signal
One decision, two expressions
Both strategies are rooted in the same principle: when one brand is clearly stronger, it should lead. The difference lies in what the brand needs to signal. One approach says: “We’re bigger now.” The other says: “We’re becoming something more.”
In both cases, branding isn’t a consequence of the deal but rather how we want the public to understand the deal.