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What is the difference between vertical and horizontal consolidation?

April 26, 2017America consolidation difference History horizontal north United vertical

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What is the difference between vertical and horizontal consolidation?

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Horizontal consolidation is when companies doing the same thing merge or take each other over – for example, when all the steelworks are taken over by the same company. Vertical consolidation is when a company merges with or takes over its suppliers or customers – for example, when the steelworks take over the coal and ore mines that supply it or the strip mills and foundries that use its steel.