A merger between Rona building supplies and West Fraser Timber Co Ltd would be an example of a
A)vertical merger.
B)horizontal merger.
C)conglomerate merger.
D)conspiracy in restraint of trade.

Question

Quizplus · Accepted Answer

Rona building supplies and West Fraser Timber Co Ltd are in different stages of the supply chain: Rona is a retailer while West Fraser Timber is a supplier of timber products. Therefore, if they merge, it would be a vertical merger as they are merging two companies that operate in different levels of the same industry.

A Merger Between Rona Building Supplies and West Fraser Timber