GEC could purchase Queen to get their brand names and their contracts, and discard everything else. If GEC believes they have the capacity to meet the demands of the Queen lines, then they could close the Queen factories, lay off all the Queen staff and produce the Queen knives without needing to carry any of the Queen overhead costs. The brand survives, but the people behind the brand do not.
It is very rare for a merger such as you describe to happen without at least some layoffs. Merger & acquisition people have a code name for this, they call it "synergy". If you read a press release about a merger/acquisition that uses the word "synergy", then look for a big layoff to be coming soon. The first to go are usually the sales staff. You don't need sales people dedicated to the two brands, a single sales rep can handle both. That downsizing happens almost immediately. Then, all the other overhead functions begin merging: accounting, purchasing, quality assurance, marketing, IT, etc. Finally, the actual manufacturing, repair, packaging and shipping/receiving is moved. HR & facilities are the last to go and turn the lights out...
I have, unfortunately, been through this scenario...
