CUET Preparation Today
| "This is a merger occurring between companies in the same industry. It is a business consolidation that occurs between firms which operate in the same space, often as competitors offering the same goods or services". Which of the following type of merger is being described here? |
Horizontal Merger Vertical Merger Market extension Merger Product extension merger |
| Horizontal Merger |
| Horizontal merger: A merger occurring between companies in the same industry. Horizontal merger is a business consolidation that occurs between firms which operate in the same space, often as competitors offering the same goods or service. Horizontal mergers are common in industries with fewer firms, as competition tends to be higher and the synergies and potential gains in market share are much greater for merging firms in such an industry. Example: A merger between Coca-Cola and the Pepsi beverage division, for example, would be horizontal in nature. The goal of a horizontal merger is to create a new, larger organization with more market share. |
