Horizontal Merger

Filed Under » Business , Investing Basics

	Definition of 'Horizontal Merger' A merger occurring between companies producing similar goods or offering similar services.
	Investopedia explains 'Horizontal Merger' This type of merger occurs frequently as a result of larger companies attempting to create more efficient economies of scale. The amalgamation of Daimler-Benz and Chrysler is a popular example of a horizontal merger.

Related Definitions

Economies Of Scale

The increase in efficiency of production as the number of goods being produced increases. Typically, a company that achieves economies of scale lowers the average cost per unit through ...
Read More »
Horizontal Integration

The acquisition of additional business activities that are at the same level of the value chain in similar or different industries. This can be achieved by internal or external ...
Read More »
Hostile Takeover

The acquisition of one company (called the target company) by another (called the acquirer) that is accomplished not by coming to an agreement with the target company's management, but ...
Read More »
- Merger
  
  The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock.
  Read More »
- Vertical Merger
  
  A merger between two companies producing different goods or services for one specific finished product.
  Read More »
- Congeneric Merger
  
  A type of merger where two companies are in the same or related industries but do not offer the same products. In a congeneric merger, the companies may share similar distribution ...
  Read More »
- Diversification Acquisition
  
  A corporate action in which a company purchases a controlling interest in another company in order to expand its product and service offerings. One way to determine if a takeover is a ...
  Read More »

Disbanding The Euro	Is Bank Of America In Danger?		The Greatest Currency Trades Ever Made	The Enron Collapse: A Look Back
	Day Trading Strategies For Beginners	The Biggest IPO Flops	How HELOCs Can Hurt You