Question
Differentiate between horizontal merger and vertical merger.
✓
Answer
Differences between horizontal and vertical merger are:
| S. No. |
Basis
|
Horizontal merger
|
Vertical merger
|
| i. |
Meaning
|
This merger is between competitors offering the same goods or services.
|
This merger is between companies producing different goods or services for one specific finished product.
|
| ii. |
Motive
|
To eliminate competition.
|
To ensure uninterrupted flow of supplies.
|
| iii. |
Example
|
A merger between Tata Motors and Hyundai.
|
A merger between Tata Motors and MRF Tyres.
|
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