When a clothing manufacturer merges with a retail clothing store chain, the merger is considered a

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A vertical merger occurs when two companies at different stages of production or distribution in the same industry combine. In this case, a clothing manufacturer (which produces the goods) merging with a retail clothing store chain (which sells the goods to consumers) is an example of a vertical merger, as they are at different stages in the supply chain of the same industry.

When a Clothing Manufacturer Merges with a Retail Clothing Store