Horizontal Acquisition


DEFINITION of 'Horizontal Acquisition'

The acquisition of one company by another in the same industry. The new combined entity may be in a better competitive position than the standalone companies that were combined to form it. Horizontal acquisitions expand the capacity of the acquirer, but the basic business operations remain the same.

BREAKING DOWN 'Horizontal Acquisition'

The companies involved in a horizontal acquisition generally produce the same goods or services. In a vertical acquisition, on the other hand, the two companies would be in the same industry but at different stages of the production cycle. For example, an acquisition of one energy producer by its larger rival would be a horizontal acquisition, but the acquisition of an oil refining company by an energy producer would be a vertical acquisition.

  1. Vertical Merger

    A merger between two companies producing different goods or services ...
  2. Acquisition

    A corporate action in which a company buys most, if not all, ...
  3. Acquisition Financing

    The capital that is obtained for the purpose of buying another ...
  4. Merger

    The combining of two or more companies, generally by offering ...
  5. Mergers And Acquisitions - M&A

    A general term used to refer to the consolidation of companies. ...
  6. Merger Of Equals

    The combination of two firms of about the same size to form a ...
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  4. How is a tender offer used by an individual, group or company seeking to purchase ...

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  5. How does a company record profits using the equity method?

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  6. How does horizontal integration allow companies to share resources?

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