What is an example of a vertical merger?
When a bicycle company and a manufacturer of inner tubes
The one company is different from the other; however it's
product is part of the other. Depending on their relative size, a
rubber company could also buy the bicycle company as an end user of
Another one you might like: a mattress manufacturer buys
companies that make all the parts for the mattresses, a trucking
company, a chain of furniture stores and a bank. Now they can make
the raw materials, turn them into mattresses, ship them to their
own stores and loan people money to buy them. In reality the
government would break this up, but that's a vertical merger.