In the given situations what types of merger is suitable for-01103
This subjective question is related to the book/course
vu eco401 Economics.
It can also be found in
vu eco401 Mid Term Solved Past Paper No. 3.
- · McDonald's with KFC
- · One steel mill with another steel mill
- · ABN AMRO with Royal bank of Scotland
- · Steel mill with a fertilizer producing firm
- · An oil cooking producing company with Desi Ghee producing company
McDonald's with KFC: The merger in this case will be a horizontal merger because they both produce related products, which is the condition of horizontal merger.
One Steel Mill with other Steel Mill: The two steel mills will merge horizontally because both the mills are producing similar product.
ABN AMRO with Royal Bank of Scotland: Both the banks will merge horizontally because both are providing similar type of services.
Steel mill with a fertilizer producing firm: Since both the firms are non- interrelated so this merger will be a diversified merger.
An oil cooking producing company with Desi Ghee producing company: The merger in this situation will be a production merger because production of both products is related but the products themselves are not competing.
