Practice question · Sort into groups
Sort each deal by its integration type.
Groups: Horizontal · Vertical · Conglomerate
- A tobacco group acquires a hotel chain
- A brewer buys its bottle manufacturer
- Two rival airlines merge
- A streaming service buys a film studio
Hints
- Ask whether the two firms are rivals, trading partners, or unrelated.
- Buying your own supplier is a move along the chain.
Show the answer
Horizontal: Two rival airlines merge
Vertical: A brewer buys its bottle manufacturer, A streaming service buys a film studio
Conglomerate: A tobacco group acquires a hotel chain
Why
Same stage = horizontal; along the supply chain = vertical; unrelated = conglomerate.
Practise Mergers and Acquisitions
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