Mynx Ltd., set up their small manufacturing unit producing bucket seat covers in the name of "Comfy". The product was a great hit in the market but after sometime, Balto Ltd - market leaders in luxury car manufacturing planned to join hands with Mynx Ltd. Such a deal will allow Balto Ltd to obtain better pricing and control over the manufacturing process. Identify this type of growth strategy.

Market Extension Horizontal merger Vertical merger Product extension

Vertical merger

A vertical merger is a merger between two companies producing different goods or services for one specific finished product. A vertical merger occurs when two or more firms, operating at different levels within an industry's supply chain, merge operations. Most often the logic behind the merger is to increase synergies created by merging firms that would be more efficient operating as one.