Question

North American Van Lines and Allied Van Lines combined in a _____ merger that will create the world's largest moving company. Prior to the merger, North American was the leading company in moving high-end merchandise such as computer and hospital equipment, while Allied specialized in households.

Answer 1

Based on the type of customers that both companies served, this is a horizontal merger.

What is a horizontal merger?

• This refers to a situation where companies in the same industry but with different market targets combine.
• This is often done to increase market share and efficiency.

North American Van Lines and Allied Van Lines targeted different customers so when they merged, this was a horizontal merger.

Find out more on horizontal mergers at brainly.com/question/1807854.