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First of all a definition: A lateral merger/takeover is where a business merges with a business who makes similar goods to it but who are not in competition with each other.
Now a real world example of that would be the 2008 takeover bid from Mars to buy Wrigleys. Mars produces Chocolate bars, whereas Wrigleys produce Chewing Gum. These goods are both confectionary good, i.e. very similar, but they dont compete with each other directly. This would be an example of a lateral merger.
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∙ 13y ago
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Can you give a real life example of a lateral merger?
if a distillery eg Smirnoff had to merge with a brewery { any beer manufacturer} that would form a lateral merger, as distilling and brewing are sperate techniques but a lateral merger would lead to cost cutting... Hope that helped :)
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