Kraft Food Inc offered to buy Cadbury,a confection and beverage company.Which advantage of related diversification could result from the merging of these two businesses?

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Synergy is the advantage of related diversification that could result from the merging of these two businesses. Synergy is the ability of two or more businesses to generate greater value together than they could on their own. In this case, Kraft Food Inc and Cadbury, both being in the confection and beverage industry, could potentially benefit from economies of scale, increased market share, and cross-selling opportunities.

Kraft Food Inc Offered to Buy Cadbury,a Confection and Beverage