Horizontal acquisition

(redirected from Horizontal Mergers)

Horizontal acquisition

Merger between two companies producing similar goods or services.

Horizontal Acquisition

The acquisition of one company by another in the same or a similar industry. This is often a part of the market consolidation process, when too many companies exist for the market to support. They then acquire each other in order to create fewer companies that are more competitive. In venture capital, horizontal acquisitions and horizontal mergers may be part of a roll up process.
References in periodicals archive ?
Horizontal mergers & acquisitions into adjacent markets that are less correlated with crop prices, such as grain storage and animal protein production systems.
in the form of horizontal mergers than targets without alliance experience.
Schaerr, Note, The Cellophane Fallacy and the Justice Department's Guidelines for Horizontal Mergers, 94 Yale L.
The 11th edition contains a new "Taking Sides" feature, requiring students to apply critical thinking skills to case-based fact situations; 21 new legal cases; and recent legal and regulatory changes, including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; amendments to the Revised Model Business Corporation Act; Leahy-Smith America Invents Act of 2011; Horizontal Mergers Guidelines of 2010; and Americans with Disabilities Act Amendments of 2008.
It argues that network effects tilt the distribution of customer surplus in vertical mergers on digital markets and therefore there might be a need for less intervention by antitrust authorities in horizontal mergers on digital markets in order to achieve higher economic efficiency.
Previous research has categorized mergers as vertical mergers, related horizontal mergers, and unrelated horizontal mergers (Clemons & Row, 1991; Capron, 1999; King, Dalton, Daily, & Covin, 2003).
Horizontal mergers among sellers in intermediate input market, where buyers are manufacturing firms, are more likely to raise price and be profitable in our model than in the Cournot model because capacity reports of sellers are typically strategic complements, not strategic substitutes.
The first horizontal mergers between companies producing the same product - aiming at scale economy production to lower the cost of producing a good - pushed officials to enact laws preventing oligopoly and market control.
Horizontal mergers, however, offer a complex mixture of efficiency gains and monopoly losses due to excessive concentration.
Horizontal mergers with free-entry: Why cost efficiencies may be a weak defense and asset sales a poor remedy.
Bower (2001) distinguishes five types of horizontal mergers (see Table 1).
In his lectures, Northwestern University Professor Michael Whinston focuses on three areas: price fixing, in which competitors agree to restrict output or raise price; horizontal mergers, in which competitors agree to merge their operations; and, exclusionary vertical contacts, in which a competitor seeks to exclude a rival.