Trans Globe Airlines has recently looked into a merger with Royal Blue Airlines,a financially troubled rival.The firms believe the merger will create a stronger company that can offer travelers more flights to a wider variety of destinations.This proposed merger is an example of a:
A)conglomerate merger.
B)leveraged buyout.
C)horizontal merger.
D)joint venture.

Question

Quizplus · Accepted Answer

This proposed merger is an example of a horizontal merger because it involves the combining of two companies in the same industry and market, both offering airline services.

Trans Globe Airlines Has Recently Looked into a Merger with Royal