A horizontal merger involves two firms operating and competing in the same kind of business activity.
Textiles firm merges raw materials firm.
Example: Exxon -Mobil
ertical mergers occur between firms in different stages of production operation.
Example: Helene Curtis and Unilever
onglomerate mergers involve firms engaged in unrelated types of business activity-
Example: General Electric buying NBC television
Based on specific management functions where as the conglomerate mergers arebased on general management functions
-Example: Citigroup (principally a bank) buying Salomon SmithBarney (an investment banker/stock brokerage operation