Bosh,an American corporation,acquires and merges with KnightD,a Belgian corporation,in a multibillion-dollar merger.Bosh,prior to the merger,sold beer only in the United States.After the merger,Bosh sells beer to most of the EU countries.The merger between Bosh and KnightD is an example of a ______.
A) vertical merger
B) horizontal merger
C) freeze-out merger
D) geographic extension merger
E) product extension merger

Question

Quizplus · Accepted Answer

The merger between Bosh, an American Corporation, and KnightD, a Belgian corporation, is an example of a geographic extension merger. A market extension merger describes an acquisition in which an acquiring company extends its markets. This market extension may be either in new products (product extension) or in new areas (geographic extension). As Bosh extends its market by acquiring KnightD, it is an example of a geographic extension merger.

Bosh,an American Corporation,acquires and Merges with KnightD,a Belgian Corporation,in a Multibillion-Dollar