horizontal mergers

A horizontal merger occurs when two companies in the same industry and at the same stage of production join forces. For example, if two car manufacturers merge, they combine resources to strengthen their market position. This can lead to increased efficiency, cost savings, and a larger market share. However, these mergers can also raise concerns about reduced competition, potentially leading to higher prices or fewer choices for consumers. Regulatory authorities often review horizontal mergers to ensure they don’t create monopolies or harm the market.