If an automobile manufacturer were to acquire one of the firms listed in the answer options, which acquisition would be called a horizontal merger?

Question

Quizplus · Accepted Answer

A horizontal merger occurs between two companies that operate in the same industry or sector, such as two automobile manufacturers. Therefore, if the automobile manufacturer were to acquire a rival manufacturer, it would be considered a horizontal merger. The other options (a steel mill, a tire producer, and a bank) are not in the same industry as automobile manufacturing, so acquiring those firms would not result in a horizontal merger.

If an Automobile Manufacturer Were to Acquire One of the Firms