Suppose that General Motors has made an offer to acquire General Mills.Ignoring potential antitrust problems, this merger would be classified as a:
A)monopolistic merger.
B)horizontal merger.
C)vertical merger.
D)conglomerate merger.
E)None of the above.

Question

Quizplus · Accepted Answer

A conglomerate merger occurs when two companies that operate in completely different industries or sectors combine. General Motors (an automotive company) and General Mills (a food company) operate in unrelated industries, making this a conglomerate merger.

Suppose That General Motors Has Made an Offer to Acquire