A product extension merger occurs when acquiring and acquired companies have related production and/or distribution activities but do not have products that compete directly with each other.

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A product extension merger occurs when the acquiring and acquired companies have related production and/or distribution activities but do not have products that compete directly with each other. This allows the merged company to expand its product line and reach a wider market without cannibalizing its own sales.

A Product Extension Merger Occurs When Acquiring and Acquired Companies