Question

When two companies that may not compete with each other but exist in the same supply chain merge, it is known as:

Options

• Horizontal merger

• Vertical merger

• Market extension merger

• Product extension merger

Answer 1

Vertical merger

Explanation:

vertical combination when two or more businesses that operate at various levels within the supply chain of an industry combine, this is known as a vertical merger. Increasing synergies through the combination of businesses that would be more effective in functioning as a single entity is typically the rationale behind mergers.