| What 3 types of mergers are there? | 1. Horizontal: Independent companies at the same level in the product chain produce ‘same or similar products' merge into one.
2. Vertical: Companies at different levels in the product chain merges into one, e.g., suppliers buying customers and vice versa.
3. Conglomerate: merger of independent companies producing different products, in different markets – Motives often involve economies of scope or diversification. |
| What is a horizontal merger? | A Horizontal merger is a merger between firms that produce and sell the same products. |
| What is a vertical merger? | A vertical merger is the merger of two or more companies that provide different supply chain functions for a common good or service. |
| What is a conglomerate merger? | A conglomerate merger is a merger between firms that are involved in totally unrelated business activities. These mergers typically occur between firms within different industries or firms located in different geographical locations |
| What mergers affect the markets the most? | Vertical mergers affect (perhaps) the market less.
Motives: profit-maximizing and non-profit motives |
| What are the two main explanations of vertical integration? | The transaction cost theory can partially explain vertical integration. Other powerful argument is to avoid double-marginalization. |
| Is Danish legislation similar to EU legislation on the M&A field? | Yes. |
