Horizontal Merger

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Description of Horizontal Merger. Explanation.




Definition Horizontal Merger. Description.

A Horizontal Merger takes place where the two merging companies produce similar product in the same industry. Unlike Vertical Mergers, which occurs when two firms, each working at different stages in the production of the same good, combine.

The joining together or combination of companies in the same industry may be deemed illegal in many countries if it tends to reduce competition substantially.

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Compare with: Horizontal Integration  |  Horizontal Agreement  |  Vertical Agreement  |  Oligopoly  |  Synergy  |  Competitive Environment  |  Competitive Position

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