If an automobile manufacturer were to acquire one of the firms listed below,which acquisition would be called a horizontal merger?
A) A steel mill
B) A rival manufacturer
C) A tire producer
D) A bank

Question

Quizplus · Accepted Answer

A horizontal merger occurs when two firms in the same industry merge or are acquired by each other. Acquiring a rival automobile manufacturer would be an example of a horizontal merger as both firms are in the same industry. Acquiring a steel mill, tire producer, or bank would not be considered a horizontal merger as they are not in the same industry as automobile manufacturing.

If an Automobile Manufacturer Were to Acquire One of the Firms