Question

The March 2011 announcement that AT&T was acquiring T-Mobile USA from Deutsche Telekom is a _________ acquisition and is intended to _________ .

Answer 1

Answer:

The correct answers that fills the gaps are: horizontal; increase market power.

Explanation:

Horizontal acquisition refers when the company acquires another from the same sector. In this case, both companies belonged to the same sector (telecommunications). The purpose, generally, was to increase the market share in the sector, also eliminating an important company from the competition.