vertical merger

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Related to Vertical Mergers: Horizontal merger, Conglomerate Mergers

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.

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.

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.

vertical merger

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

References in periodicals archive ?
(39) In a 1995 speech, then-Deputy Assistant Attorney General Steven Sunshine interpreted the four prohibitions against vertical mergers in the 1984 Guidelines as corresponding to three general categories of vertical merger harm--"foreclosure/raising rivals' costs, increased anticompetitive coordination, and regulatory evasion." The first of these theories is essentially a tying story in the context of vertical rather than horizontal complements.
(19) There are also likely to be significant efficiencies with vertical mergers that reduce the likelihood that the agencies will challenge them.
(28) See Klass & Salinger, Do New Theories of Vertical Foreclosure Provide Sound Guidance for Consent Agreements in Vertical Merger Cases?, 40 ANTITRUST BULL.
There is little evidence that an activist antitrust policy against vertical mergers is as risky as Areeda and Turner suggest, or that it is likely to jeopardize efficiency and diminish economic welfare.
In this LIVE Webcast, a seasoned panel of thought leaders and professionals brought together by The Knowledge Group will present to the audience an in-depth analysis of the fundamentals as well as recent developments in vertical merger enforcement.
Legal experts noted that Trump's lawsuit against AT&T is the first time in decades the federal government has challenged the vertical merger doctrine.
Bork's view of vertical mergers was largely dictated by his position on vertical contractual restraints.
Yesterday's favourable ruling for AT&T, which Fitch previously anticipated, should provide regulatory support for future vertical mergers with limited competitive overlap.
This Feature disputes the Chicago School account outlined above and explains instead that some (but not all) vertical mergers raise substantial competitive concerns.
Vertical mergers and acquisitions in the biopharmaceutical industry have increased steadily, and analysts predict that large industry players will continue acquiring small firms through 2018.
Wall Street analysts expect the results of the trial will determine if more telecom and entertainment companies will pursue ambitious vertical mergers. "This could direct the future path of the industry," said Steven Salop, a professor of economics and law at Georgetown University Law School.
But a government defeat would give AT&T full control over one of the world's largest media and entertainment conglomerates, and open the floodgates to a wave of new vertical mergers Justice may have little power to stop.