A congeneric merger is where the acquiring company and the target company are in the same or related industry but have different business lines or products. The two companies involved in a congeneric merger may share similar production processes, distribution channels, marketing, or technology.
What is horizontal merger with an example?
Horizontal mergers are common in industries with fewer firms, as competition tends to be higher and the synergies and potential gains in market share are much greater for merging firms in such an industry. A merger between Coca-Cola and the Pepsi beverage division, for example, would be horizontal in nature.
What is concentric merger example?
4. Concentric merger: It refers to combination of two or more firms which are related to each other in terms of customer groups, functions or technology. For eg., combination of a computer system manufacturer with a UPS manufacturer.