In a Vertical Merger, the companies that combine should belong to :

a

B

B.Same industry but different level in supply chain.

Business firms merge for a variety of reasons, both financial and non-financial. There are a number of types of mergers. Horizontal and vertical mergers are just two of many types of mergers that are usually classified as non-financial mergers. 

Vertical mergers or vertical integration happens when the acquiring firm buys buyers or sellers of goods and services to the company. In other words, a vertical merger is usually between a manufacturer and a supplier. It is a merger between two companies that produce different products or services along the supply chain toward the production of some final product. Vertical mergers usually happen in order to increase efficiency along the supply chain which, in turn, increases profits for the acquiring company.

Option b) Same industry but different level in supply chain - is the correct answer.

(A)

B

The Answer A

The answer got this question is '"B"

b. Same industry but different level in supply chain

Vertical integration is intended by the merger between institutions working in complementary economic activities .. such as the merger of quarries with a cement factory .. or merger of yarn and fabric manufacturing company with ready-made clothes .. and vertical integration is to achieve economies of modern technology such as avoiding certain costs such as the cost of transportation or the cost of the contract or the cost of the exchange market or the cost of advertising or other .. the merger creates a vertical type of integration in production