In 1988,Philip Morris,the leading cigarette manufacturer in the United States,merged with Kraft Inc.,the maker of several leading food brands such as Miracle Whip,Velveeta,and Maxwell House.This combination would be classified as what type of merger?
A)a horizontal merger
B)a conglomerate merger
C)a macro merger
D)a vertical merger

Question

Quizplus · Accepted Answer

A conglomerate merger is a merger between two companies in unrelated industries. Philip Morris and Kraft Inc. are in completely different industries, tobacco and food respectively, and thus their merger would be considered a conglomerate merger. A horizontal merger involves the combination of two companies in the same industry, a macro merger involves the merging of many companies at once, and a vertical merger involves the combination of two companies in the same supply chain.

In 1988,Philip Morris,the Leading Cigarette Manufacturer in the United States,merged