A conglomerate is a corporation that is made up of a number of different, seemingly unrelated businesses. In a conglomerate, one company owns a controlling stake in a number of smaller companies, which conduct business separately.

Conglomerates are large companies that are made up of independent entities that operate in multiple industries. Many conglomerates are multinationals and multi-industry corporations. Every one of a conglomerate's subsidiary businesses runs independently of the other business divisions, but the subsidiaries' management report to the senior management of the parent company.

Taking part in many different businesses help a conglomerate's parent company cut back the risks from being in a single market. Doing so also helps the parent lower costs and use fewer resources.

Examples:

There are many different types of conglomerates in the world today, from manufacturing to media to food. A manufacturer may begin by making and selling its own products. It may decide to expand into the electronics market, then moving into another industry like financial services. A media conglomerate may start out owning several newspapers, then buy television and radio stations, and book publishing companies. A food conglomerate may start by selling potato chips. The company may decide to diversify, buying a soda pop company, then expand even more by purchasing other companies that make different food products.

Well known conglomerates: Berkshire Hathaway, General Electric


https://www.investopedia.com/terms/c/conglomerate.asp