Attempts: 1 2. Types of mergers Mergers often are classified according to the me

Question

Attempts: 1 2. Types of mergers Mergers often are classified according to the mergers participants and their lines of business. Identify each of the Average: 15 As Aa following four types of mergers: Description Motive for Merger A merger between firms with totally different industries A merger between the manufacturer and its supplier of raw materials A merger between firms that are in the same industry but in different areas of that D industry and lack a customer-supplier relationship A merger bet ween two retail giants producing the same type of clothing Both Citigroup and Travelers Insurance were in the financial services indusbry but hed different product lines. In April 1998, Ctigroup merged with Travelers Group. Such a merger would be best described as a: O Conglomerate merger O vertical merger O Congeneric merger O Horizontal merger

Explanation / Answer

Answer:

Merger between totally different firms = CONGLOMERATE MERGER.

Merger between manufacturer and it's supplier of raw material = VERTICAL MERGER.

Merger between the firms that are in same industry but in different areas of that industry and lack a customer supplier relationship = MARKET EXTENSION MERGER.

Merger between two retail giants producing the same type of clothing = CONCENTRIC MERGER.

Both citi group and travelers insurance were in the financial service industry but had different product lines. In April 1998, citigroup merged with travelers group . Such a merger would be best described as a : HORIZONTAL MERGER.

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