Horizontal merger is when two companies which belong to the same industry merge – for example the Vodafone and Idea merger. They belong to the same industry i.e. telecommunications.
A vertical merger is a merger between two companies that operate at separate stages of the production process for a specific finished product. A vertical merger occurs when two or more firms, operating at different levels within an industry’s supply chain, merge operations. Most often, the logic behind the merger is to increase synergies created by merging firms that would be more efficient operating as one.
