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disadvantages- unlikely economic benefits will be generated for the target or the bidder

advantages- diversification

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Stefanie Raynor

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Q: What are Advantages and disadvantages of conglomerate merger?
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A conglomerate merger is one between two strategically unrelated firms from which economic benefits is not possible for the bidder or the target. The merger between Walt Disney Company and American Broadcasting Company is a conglomerate merger.


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Conglomerate is a merger between firms that are involved in totally unrelated business activities. A vertical merger is a merger between firms that exist in the same supply chain, while a horizontal merger is a merger between firms in the same industry.


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A solution refers to the merger of either two liquids or a solid and a liquid to form a unified liquid that cannot be mechanically separated. As such, conglomerate rock is a mixture and not a solution.