Economic Definition of horizontal merger. Defined.
Offline Version: PDF
Term horizontal merger Definition: The consolidation under a single ownership of two separately-owned businesses in the same industry. An example of a horizontal merger would be two soft drink companies merging to form a single firm. A horizontal merger should be contrasted with vertical merger--two firms in different stages of the production of one good, such that the output of one business is the input of the other; and conglomerate merger--two firms in totally, completely separate industries.
« horizontal equity | hostile acquisition »
Permalink: https://glossary.econguru.com/economic-term/horizontal+merger