What are examples of a vertical merger and a horizontal merger. I need an example for each.?
Vertical Mergers A vertical merger is one in which a firm or company combines with a supplier or distributor. This type of merger can be viewed as anticompetitive because it can often rob supply business from its competition. If a contractor has been receiving a material from two separate firms, and then decides to acquire the two supplying firms, the vertical merger could cause the contractor’s competitors to go out of business (say, if General Motors were to buy up Bridgestone Tyres and Michelin Tyres). Antitrust concerns are a focal point of investigation if competition is hurt. The Federal Trade Commission can rule to prevent mergers if they feel they violate antitrust laws. Guidelines Vertical mergers involve a manufacturer forming a partnership with a distributor. This makes it hard for competing companies to compete with the newly merged company because of the advantages that the merger brings. These benefits occur because the distributor no longer has to pay the supplier for ma
