Two long-time competitors, Freddie's Market and Greta's Groceries, recently issued an announcement stating their decision to merge. The statement claimed that the new company would have more financial resources, which would enable it to expand services and broaden offerings to customers. This proposed merger is an example of a horizontal merger.

Question

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A merger between two firms in the same industry, such as two grocery stores, is a horizontal merger.

Two Long-Time Competitors, Freddie's Market and Greta's Groceries, Recently Issued