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Difference between congeneric merger & horizontal merger?
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Horizontal mergers occur when two companies operating in the same industry and producing the same or similar products or services combine their operations. The aim of a horizontal merger is usually to achieve economies of scale, increase market share, reduce competition, or gain access to new markets. Example two oil companies merging
Congeneric mergers involve companies that are in the same general industry but produce different products or services. These mergers often occur between companies that have complementary products or services, which can result in synergies through cross-selling or combining technologies or distribution channels. Kraft Foods, a multinational food and beverage company, primarily focused on producing a wide range of packaged food products, including snacks, beverages, and dairy products. Cadbury, on the other hand, was a renowned confectionery company known for its chocolates, candies, and other sweet treats. The merger between Kraft Foods and Cadbury represented a congeneric merger