The merger between Glaxco and Smithkhine Beecham, not only helped gain a market share but also helped in eliminating competition between both the companies. Identify the type of merger between the companies.

Horizontal merger

The merger between Glaxco and Smithkhine Beecham is an example of a horizontal merger.

A horizontal merger is a merger between two companies that are direct competitors in the same industry. In this case, Glaxco and Smithkhine Beecham were both pharmaceutical companies that competed in the same markets. By merging, the two companies were able to eliminate competition between themselves and gain a larger market share.

The other options are not as appropriate:

• Conglomerate merger is a merger between two companies that operate in different industries. This is not the case with Glaxco and Smithkhine Beecham, as both were pharmaceutical companies.
• Vertical merger is a merger between two companies that are in different stages of the production or distribution chain. For example, a manufacturer might merge with its supplier or distributor. Glaxco and Smithkhine Beecham were not in different stages of the production or distribution chain.
• Market extension merger is a merger between two companies that are in the same industry but operate in different geographic markets. For example, a company might merge with its competitor in another country. Glaxco and Smithkhine Beecham were in the same industry and operated in the same geographic market.