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    Horizontal, vertical and conglomerate merger

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    I'm trying to determine whether integration between the following types of firms would constitute a horizontal, vertical, or conglomerate merger. I took a guess, but am not sure as to the reasoning behind each. Can you clarify the types of mergers for me?

    A food company and a drug company = conglomerate merger
    A milk producer and a cheese producer = horizontal merger
    A computer chip manufacturer and a silicon producer = vertical merger

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    Solution Preview

    Conglomerate merger is merger between companies which are of unrelated industry like food and drug industry.
    Horizontal merger is a ...

    Solution Summary

    This explains the concepts of horizontal, vertical, and conglomerate merger with examples