If two firms that were previously in competition with each other merge, the merger is called a:

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A horizontal merger is a merger in which two companies operating in the same industry and producing the same or similar products or services combine. In this case, two competing firms are merging, and therefore it is a horizontal merger. Vertical mergers involve two companies in the same supply chain, while a complete merger and a competition merger are not commonly used terms in business. A final merger is not a recognized term.

If Two Firms That Were Previously in Competition with Each