horizontal merger


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Related to horizontal merger: Vertical Merger, Conglomerate merger

Horizontal merger

A merger involving two or more firms in the same industry that are both at the same stage in the production cycle; that is, two or more competitors.

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.

horizontal merger

A merger between firms that provide similar products or services. Merging one steel manufacturer into another steel manufacturer is an example of a horizontal merger. Horizontal mergers permit the surviving firm to control a greater share of the market and, it is hoped, gain economies of scale. Compare vertical merger.
References in periodicals archive ?
Furthermore, those vertical and horizontal mergers notified outside of the simplified procedures can be considered as potentially anti-competitive transactions from the EC's standpoint.
The law-study also points out (45) that a horizontal merger can yield profits in a ninth way that may be Sherman-Act-licit--viz.
Similar to the definition of horizontal mergers, we define a horizontal alliance as one between two partners that share the same three-digit primary SIC code.
A strict application of the presumptions of the Horizontal Merger Guidelines is overly harsh.
99) Similarly, in the 2010 Horizontal Merger Guidelines, the FTC and Justice Department state that "[s]ome of the analytical tools used by the Agencies to assess competitive effects do not rely on market definition, although evaluation of competitive alternatives available to customers is always necessary at some point in the analysis.
Numerous cases have already given weight to the value of behavioral antitrust and the revised Horizontal Merger Guidelines as well as the 2011 Remedies Guide suggest greater use of behavioral-based approaches.
See generally 2010 HORIZONTAL MERGER GUIDELINES, supra note
The EC's horizontal merger guidelines place the burden of proving efficiencies on the merging parties and require that the efficiencies claims "be verifiable such that the Commission can be reasonably certain that the efficiencies are likely to materialise.
In any case, there is a common perception that the degree of product differentiation is a crucial determinant of the welfare effects of horizontal mergers.
It is well known that the traditional analysis framework on horizontal mergers, in the light of private incentives to mergers and merger process, heavily base on quantity-setting (Cournot Oligopoly) models.
Eighteen years have passed since the Horizontal Merger Guidelines were revised.

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