Question

disadvantage of a horizontal merger for costumers

Answer 1

Answer:

Other cons of horizontal integration include:

Stunting economic growth of the new enterprise.

Reduced flexibility: This happens because the company is now a larger organization. ...

Destroying value rather than creating it: This happens because the synergies never materialize despite the costs of the horizontal integration.

Answer 2

Answer:

The advantages include increasing market share, reducing competition, and creating economies of scale. Disadvantages include regulatory scrutiny, less flexibility, and the potential to destroy value rather than create it.

Explanation:

A merger between Coca-Cola and the Pepsi beverage division, for example, would be horizontal in nature. The goal of a horizontal merger is to create a new, larger organization with more market share.