Joint venture

A joint venture (JV) is formed when two or more distinct firms combine a portion of their resources to form a separate, jointly-owned entity. Joint ventures differ from mergers and acquisitions. Companies may pursue joint ventures for multiple reasons: to access a new market, particularly an emerging market; to gain scale efficiencies by combining assets and operations; to share risk for major investments or projects; or to access skills and capabilities. In several countries, infrastructure development is carried out jointly by the government and private businesses through public-private partnerships, often as joint ventures.