Tech Solutions, Inc., a manufacturer of laptops, is considering a merger with Outtel, a leading producer of microprocessors and other computer chips. Tech Solutions believes such a merger would give them a guaranteed source of needed components, and enable them to have better control over quality. If this merger occurs, it would be an example of a horizontal merger.

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This would be an example of a vertical merger, as Tech Solutions would be acquiring a supplier of components for their final product. A horizontal merger would involve two companies at the same level of production merging, such as two laptop manufacturers merging.