Zenith Co.is a company that manufactures cloth.It purchases the cotton required as raw material from Yell Mart.Zenith Co.acquires Yell Mart.Identify the type of merger.

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A vertical merger is a merger between firms that previously had,or could have had,a supplier-customer relationship.Since Zenith and Yell Mart had a supplier-customer relationship-Zenith being the customer of cotton from supplier Yell Mart-Zenith's acquisition of Yell Mart would be classified as a vertical merger.

Zenith CoIs a Company That Manufactures Cloth