A merger in which the target's industry buys or sells to the acquirer's industry is called a(n):
A)horizontal merger.
B)vertical merger.
C)conglomerate merger.
D)industrial merger.
E)complementary merger.

Question

Quizplus · Accepted Answer

A vertical merger is a merger between two companies that produce different goods or services for one specific finished product. In this case, the target's industry sells to the acquirer's industry or vice versa. This type of merger is different from a horizontal merger (A), which involves two companies in the same industry, and a conglomerate merger (C), which involves two companies in completely different industries. Industrial (D) and complementary (E) mergers are not widely recognized categories.

A Merger in Which the Target's Industry Buys or Sells