28/04/2003

In addition there can be a further classification of mergers:

·        Horizontal

·         Vertical

·         Conglomerate

“In a horizontal merger two companies which are engaged in similar lines of activity are combined”.

“Vertical mergers occur when firms from different stages of the production chain amalgamate”.

“A conglomerate merger is the combining of two firms, which operate in unrelated areas”

(Glen Arnold, 2002, Corporate Financial Management, Financial Times, Prentice Hall, p.870).