Citi group was created after the merger of Citicorp and travelers Insurance group. Identify the form of Merger?

Conglomerate

Conglomerate A merger between firms that are involved in totally unrelated business activities. There are two types of conglomerate mergers: pure and mixed. Pure conglomerate mergers involve firms with nothing in common, while mixed conglomerate mergers involve firms that are looking for product extensions or market extensions. In this case, Citicorp was a financial services company, while Travelers Insurance group was an insurance company. By merging, the two companies created a larger and more diversified company that was better able to compete in the global marketplace.

The other options are not as appropriate:

• Absorption is a type of merger in which one company takes over another company and the smaller company ceases to exist. In this case, both Citicorp and Travelers Insurance group continued to exist after the merger.
• Amalgamation is a type of merger in which two or more companies combine to form a new company. In this case, Citicorp and Travelers Insurance group merged to form Citigroup.
• Vertical merger is a type of merger between two companies that are in the same supply chain. For example, a manufacturer might merge with its supplier or distributor. In this case, Citicorp and Travelers Insurance group were not in the same supply chain.