Which of the following is true of a congeneric merger?
A)The combining companies sell the same product or service.
B)The merger is likely to improve the acquirer's competitive position.
C)The combining companies are in completely different industries.
D)The level of competition in the acquirer's industry is drastically reduced.

Question

Quizplus · Accepted Answer

A congeneric merger involves companies in the same or related industries but do not necessarily offer the same product or service. It can improve the acquirer's competitive position by expanding its product lines or market reach.

Which of the Following Is True of a Congeneric Merger