GRANT COUNTY CAR SALES

b) Commission that is worried about the market and the consumers keeps a hawk’s eye on such mergers and at times detains the companies from merging in the interest of the people.

c) The Vertical Mergers- are the mergers between a supplier and the distributor company of the supplies. This is an anti competitive merger but can be highly beneficial to the company. It is because the distributor will no more have to pay for the manufacturing of the supplies, it gets the product at the base price. So there is good cost saving due to this. Vertical merger also rules out lot of competition from the market.

d) Market Extension Merger is between the companies selling same product but in different markets. This merger enhances the market for the two companies since they now act as one sole company.

• e) Product Extension Merger is like the one between an eminent company making motor parts and another that makes their own cars. So, the companies involved here sell different but more or less the same product in the same market. This merger promotes the sale of both the companies significantly.

f) Conglomeration is a merger where the concerned companies have nothing in common to sell.

• There are various reasons behind merger of companies. Like.