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.
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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.
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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.
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.
References in periodicals archive ?
Horizontal Merger Guidelines of 2010, it must be asked whether the merged company "likely would impose at least a small but significant and non-transitory increase in price on at least one product" in the range of 5% to 10%.
For example, the structural thresholds in the 2010 Horizontal Merger Guidelines are not placed there for their own sake, but only because they support an inference that as market structures become more concentrated, the dangers of collusion or collusionlike behavior become more severe.
(95) The Horizontal Merger Guidelines similarly make it clear that a horizontal merger violates Section 7 if it creates anticompetitive effects in any relevant market, which normally involves direct purchasers.
There is a sizeable literature on the effects of horizontal mergers in Cournot and Bertrand models of oligopoly.
(33.) Department of Justice and Federal Trade Commission, 1992 Horizontal Merger Guidelines, 4 Trade Reg.
in the form of horizontal mergers than targets without alliance experience.
The Merger Guidelines apply the standard horizontal merger framework to the acquisition of a firm that is outside the market but committed to entering.
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.
of Justice, Issue Revised Horizontal Merger Guidelines (Aug.

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