What are the types of Reunification Companies?

Recombination companies are generally classified into two types: horizontal merger companies and vertical merger companies.

1. Horizontal Merger Companies: Horizontal merger is the merger of two companies operating in the same sector. Such mergers are generally undertaken to gain competitive advantage, increase market share or reduce costs. Examples include the merger of two telecommunications companies or the merger of two automobile manufacturing companies.

2. Vertical Merger Companies: A vertical merger is the merger of a company with another company that is its supplier or customer. Such mergers are carried out to ensure control of the supply chain, reduce costs or operate more efficiently. For example, an automobile manufacturing company merging with an auto parts supplier or a retail company merging with its supplier company are examples of vertical mergers. Other types of recombination companies include conglomerate mergers, financial mergers, and investment mergers. Conglomerate mergers are the merger of companies operating in different sectors. Financial mergers occur between financial institutions, for example banks or insurance companies. Investment mergers are when one company invests in or acquires another company.



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