horizontal merger
- noun
- /ˈhɔːrɪzɒntəl ˈmɜːrdʒər/
- Specialized
:
fusión horizontal
- A horizontal merger can eliminate competition and increase market share for the new company.
Examples
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Economists often debate the effects of a horizontal merger on consumer prices and industry innovation.
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The recent horizontal merger between two tech giants raised concerns.
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The government blocked the proposed horizontal merger between the two telecommunications giants.
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Many analysts believe a horizontal merger can reduce competition.
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The company announced a horizontal merger with its main competitor to increase market share.
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Following several months of negotiation, the two tech firms finalized their horizontal merger to dominate the industry.
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Investors were optimistic about the potential growth resulting from the horizontal merger between the two leading pharmaceutical companies.
Synonyms
1
6.8
A company grows by buying or joining similar companies at the same business level to reduce competition
Joining companies that do the same work to reduce competition or save money
Antonyms
- Specialized
Companies at different stages of making and selling join into one firm
How Integrated
Surface Forms
Morphology
While 'merger' (the act of uniting companies) is transparent, 'horizontal' in this phrase uses a metaphorical business sense meaning 'at the same level or stage.' The connection is partially inferable (horizontal → same level), but mapping that to 'companies in the same sector/stage (competitors)' is specialized and not fully predictable for a B1 learner, so it is only semi-transparent.
Etymology
Horizontal merger comes from the image of two companies joining side by side: horizontal means at the same level and merger means coming together. Imagine two shops on the same street becoming one shop and removing a rival; that's why the term means two firms in the 'same business' joining to 'gain more customers' and 'reduce competition'.