Which of the following statements is true for conglomerate mergers?
A) They occur when one firm purchases either a customer or a supplier.
B) They do not change the ownership of firms in the markets.
C) There are no anticompetitive effects of forming a conglomerate.
D) They are mergers in which the merging firms had no prior relationship. Conglomerate mergers are those in which the merging firms had no prior relationship.

Question

Quizplus · Accepted Answer

The firms may have been potential competitors but they were not customers or suppliers of each other. True conglomerate mergers have no overt effect upon competition or market shares; they merely change the ownership of firms in the markets. There are, however, anticompetitive effects of forming a conglomerate.

Which of the Following Statements Is True for Conglomerate Mergers