Mergers can take on several different forms, each with its own unique strategy. A conglomerate merger occurs when two companies from unrelated industries come together, often aiming to diversify their operations and expand into new markets. On the other hand, a horizontal merger involves the combination of two companies that operate in the same industry and are often competitors. This type of merger seeks to increase market share and eliminate competition.
In a market extension merger, two companies within the same industry but in different geographic areas join forces to expand their customer base and reach new markets. Similarly, a vertical merger involves the integration of two companies in the same industry but at different stages of the supply chain. This type of merger allows for increased control over the production process and can lead to cost-savings. Lastly, a product extension merger occurs when two companies with complementary products or services merge to offer a broader range of offerings and provide a one-stop solution for customers.