Rank the various types of mergers from high to low with respect to their potential to raise antitrust issues.
A)Conglomerate, Horizontal, Vertical
B)Horizontal, Vertical, Conglomerate
C)Vertical, Horizontal, Conglomerate
D)Horizontal, Conglomerate, Vertical
E)Vertical, Conglomerate, Horizontal

Question

Quizplus · Accepted Answer

Horizontal mergers, where two competitors in the same market combine, have the highest potential to raise antitrust issues by reducing competition and potentially leading to market domination. Vertical mergers, where companies in different stages of the supply chain come together, may also raise concerns if they create barriers to entry or give the merged entity excessive market power. Conglomerate mergers, where companies in unrelated industries merge, generally have lower potential to raise antitrust issues as they do not directly impact competition in a specific market.

Rank the Various Types of Mergers from High to Low