Horizontal acquisition


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Related to Horizontal acquisition: Vertical Merger

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 ?
We conclude that to the extent the empirical evidence warrants the conclusion that large scale horizontal acquisitions threaten reduced product output and higher prices, the existing tools of antitrust merger enforcement are sufficient to support challenges to those acquisitions.
Whether strains of MRSA in the community also arise de novo, as a consequence of horizontal acquisition of the mecA gene, is unclear.
[8.] Capron, Laurence and John Hulland, "Redeployment of Brands, Sales Forces, and General Marketing Management Expertise Following Horizontal Acquisitions: A Resource-Based View," Journal of Marketing, 1999; 63 (April), 41-54.
[9.] Capron, Laurence, Pierre Dussauge, and Will Mitchell, "Resource Redeployment Following Horizontal Acquisitions in Europe and North America, 1988-1992," Strategic Management Journal, 1998; 19 (7), 631-61.
Asset divestiture following horizontal acquisitions: a dynamic view.
Table 5 also shows a negative acquisition coefficient in the operating margin model indicating that horizontal acquisitions may have temporal negative impact on industry operations.
Whereas market dominance at the century's start - in oil and tobacco, for example - was sustained by scale economies (prompted by add-on or horizontal acquisitions that consolidated an industry platform), dominance at the century's end relies heavily on the perceived differentiation of brand names like AT&T, IBM, and Microsoft (or Intel inside).
While value creation is most closely associated with the origination function, a number of top-30 participants have incorporated vertical and horizontal acquisitions to reduce the unknowns of value creation.
In 1950, the Clayton Act of 1914 was amended to close loopholes in preventing horizontal acquisitions. From 1950 to 1980, major horizontal acquisitions were prohibited by the antitrust authorities.
To some degree this was because after 1980 horizontal acquisitions could be made in food.
Horizontal acquisitions occur when firms acquire their competitors, vertical acquisitions occur when firms acquire their suppliers or distributors, and conglomerate acquisitions occur when firms acquire unrelated firms.
Accordingly, we should see a relationship between the type of acquisition (horizontal, vertical, or conglomerate) completed by the tied-to and focal firms: Hypothesis 3a (H3a): The number of prior horizontal acquisitions by tied-to firms is positively associated with the number of current horizontal acquisitions by the focal firm.