Question
Explain in detail the types of mergers.

Answer

The various types of mergers are as follows:
  1. Conglomerate merger: In this type of merger, firms involved in totally unrelated businesses, come together.
  2. Horizontal merger: This merger is between companies in the same industry, competing with one another.
  3. Market extension merger: This type of merger takes place between companies that deal in the same products but in separate markets.
  4. Product extension merger: A product extension merger takes place between two business organisations that deals in products that are related to each other and operates in the same market.
  5. Vertical merger: A merger between two companies producing different goods or services for one specific finished product is termed as a vertical merger. It is between firms operating at different levels within an industry.

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