"Alag Motors Ltd." was a leading tyre manufacturer. It merged with a car manufacturing plant "Jaldi cart & Co." and started a new business in the name of "Alagcart Ltd."to synergise and capture a major share of the market. Like their competitors, they decided to sell their cars through company appointed dealers (retailers) in various parts of the country. This would relieve the company from the burden of selling the cars while at the same time giving them control over the distribution process. From the case study above, identify the type of merger.

Conglomerate Horizontal merger Vertical merger Product extension

Vertical merger

Explanation: A vertical merger occurs when two or more firms, operating at different levels within an industry's supply chain, merge operations.