Question

When Hardware Headquarters and National Hardware joined forces, it reduced the number of corporations competing in the hardware industry. As a result, federal regulators carefully reviewed the merger before it was allowed to proceed. What type of merger is this?

Answer 1

Answer: This type of merger is called a horizontal merger.

Explanation:

These businesses are both hardware business which means they operate in the same industry when these type of similar businesses come together to operate as one this is referred to as a horizontal merger.

This is beneficial to both businesses since it reduces the competition amongst each other.

How Horizontal Mergers Work

When the similar businesses combine their product it results to greater sales as compared to when they operates individually. They may be able to give various different products to their customers when they work as a big one company.