When Compaq and Hewlett-Packard decided to become one company, this was an example of a horizontal merger.
What is a horizontal merger?
- A horizontal merger is a merger between competing enterprises that make and sell the same items.
- Horizontal mergers, if considerable in size, can limit market competition and are frequently scrutinized by competition authorities.
- When companies in the same industry merge, this is referred to as a horizontal merger.
- They frequently result in a means to remove competition by becoming a single big corporation rather than two competitors.
- Horizontal mergers can significantly boost revenue because the combined company has access to a wider range of products or services.
- A horizontal merger occurred when Compaq and Hewlett-Packard decided to merge into one entity.
Therefore, when Compaq and Hewlett-Packard decided to become one company, this was an example of a horizontal merger.
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