What is a horizontal merger ?


A horizontal merger is a merger between competing firms offering similar products or services to the same market. Such a merger results in a larger firm with more market share and power and reduces competition in the market.

Depending on how similar the business operations of the merging companies are, a horizontal merger can present an opportunity to cut costs by combining certain operations, such as manufacturing. According to The Economist, a good example of a horizontal merger is the Hewlett-Packard and Compaq merger of 2002. The U.S. government, through the Antitrust Division of the Department of Justice, carefully scrutinizes proposed horizontal mergers and challenges competitively harmful mergers that have the potential to substantially reduce competition or create a monopoly.

Q&A Related to "What is a horizontal merger ?"
Definition: A horizontal intergration occours when a firm takes over or merges with another firm in the same stage of production, Producing similar or same products .Advantages.Achieave
A Horizontal Merger is a merger occurring between companies producing similar goods or
A merger is the process of combining two or more organizations into one. A business merger can include two banks coming together to form a larger bank, or other business dealings.
Kayak is a great example of horizontal mergers - both as an acquirer and as an acquisition target. In 2007, Kayak Raise $196MM to buy its chief competitor, SideStep. Breaking: Kayak
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