vertical merger


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Vertical merger

When one firm acquires another firm that is in the same industry but at another stage in the production cycle. For example, the firm being acquired serves as a supplier to the firm doing the acquiring.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Vertical Merger

A merger between two companies in the same industry but at different stages of the production cycle. A vertical merger can reduce the costs of the two companies by eliminating redundant processes. It also reduces reliance of one company on another. For example, an upstream oil company can merge with a downstream oil company to streamline operations.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

vertical merger

A merger between two firms involved in the same business but on different levels. As an example, an automobile company may purchase a tire manufacturer or a glass company. The merger permits the firm to gain more control of another level of the manufacturing or selling process within that single industry. Compare horizontal merger.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

vertical merger

A merger between companies that supply different goods or services but in a common industry.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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Vertical mergers, in particular, should be viewed as anticompetitive only in an indirect way and under specific scenarios and sets of circumstances.
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Opposing the merger forced the DOJ to argue against standing legal doctrine that favors vertical mergers among firms that don't compete directly against each other.
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A major consequence of the Chicago School commentators' flawed economic theories with respect to vertical merger enforcement is that this body of law has remained undeveloped for the past forty years.
Invigorating Vertical Merger Enforcement
Regarding foreclosure, so-called post-Chicago analysis has shown that vertical mergers can lead to real foreclosure in input markets, thus enhancing monopoly profits with little or no efficiency benefits.
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Pricing Techniques, Contract-Clause and Sales-Policy Surrogates for the Hierarchical Controls That Vertically-Integrated Firms Can Use to Induce Their Managers and Staff to Act in the Firm's Interest, and Vertical Mergers and Acquisitions
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Uncreative destruction: the misguided war on vertical integration in the information economy
Cultural integration may not be necessary or even advisable in a vertical merger, in which the acquirer hopes to gain access to key resources of the target company (such as a coffee retailer buying a coffee-growing firm in another country), or when a company purchases a downstream distribution outlet (such as a plastics manufacturer purchasing a container store where many of its products are sold).
The right blend: incompatible corporate cultures can doom a merger. Here's how to successfully integrate people and processes
Spiller (1985) suggests that "site specific assets can increase the viability of a vertical merger ...
When do vertical mergers create value?
With the continuously growing debate on the application of vertical integration, it becomes more imperative for companies to know about the latest updates and developments in vertical merger enforcement in order to help clients avoid unwanted risk and pitfalls in compliance.
Nitin Dua, PhD, Principal with Bates White, to Speak at The Knowledge Group's Vertical Merger Enforcement
Although the possibility that a vertical merger may lead to coordination was recognized in some cases, (18) it was not retained as a key cause of concern in the cases examined so far.
Application of the nonhorizontal merger Guidelines

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