There are five basic categories or types of mergers:
- Horizontal merger: A merger between companies that are in direct competition with each other in terms of product lines and markets
- Vertical merger: A merger between companies that are along the same supply chain (e.g., a retail company in the auto parts industry merges with a company that supplies raw materials for auto parts.)
- Market-extension merger: A merger between companies in different markets that sell similar products or services.
- Product-extension merger: A merger between companies in the same markets that sell different but related products or services.
- Conglomerate merger: A merger between companies in unrelated business activities (e.g., a clothing company buys a software company.
By I hope you enjoyed this information,
Sebastian Amieva