Deutsche Bank became the world's largest bank through mergers with Bankers Trust, a transatlantic banking operation. Since both banking companies had similar core capabilities, this would be classified as an example of ____.

Question

Quizplus · Accepted Answer

The merger between Deutsche Bank and Bankers Trust would be considered related diversification as both companies have similar core capabilities and are in the same industry. This type of diversification involves expanding into a related business or industry in order to leverage existing capabilities and gain economies of scope.

Deutsche Bank Became the World's Largest Bank Through Mergers with Bankers