Businesses engage in vertical merger in order to remove inefficiencies in the supply chain. For example, a manufacturer might purchase its distributors and improve profitability by realizing economies of scale in advertising. Another motive for vertical merger is to create a monopoly by integrating ...
Economic Definition of Vertical Merger As per the business definition on MBDV.Gov, “Vertical merger occurs when two or more firms, operating at different levels within an industry’ssupply chain, merge operations.” While as per another definition on business.gov, “Vertical Merger is a combinat...
A vertical merger is the merger of two or more companies that provide different supply chain functions for a common good or service.
Vertical integration is a similar concept in which a company expands its operations into other phases of the supply chain. However, this can be achieved internally and does not always require a merger of businesses. The opposite of a vertical merger, is a horizontal merger, in which two compan...
Horizontal Acquisition vs. Vertical Acquisition There are different types of acquisitions, some of which focus on obtaining equipment or control of operations at another point in the production cycle. Avertical acquisitionis another kind of business transaction that results in the consolidation of two ...
a For its part,the Antitrust Division has stepped up enforcement in the past year in vertical mergers, which historically have received less scrutiny than combinations between competitors. For example, the Ticketmaster and Live Nation merger had significant vertical dimensions in the live entertainment...
The trading strategy of buying up target shares on thenewsof an announcement and waiting until the acquirer pays the full amount at the closing date is called“merger arbitrage”(also called“risk arbitrage”) and is a type of “event-driven” investing. There arehedge fundsdedicated to this....
Tata Motors had been one of the oldest players in the automobile industry of India. After expanding its dominance all over the economy, the company aimed at expanding its business all over the globe which made it adopt tie-up strategies with automobile companies in some of the major emerging ...