Question

Etco energy and baltic energy have decided to merge. Both companies provide similar products and services. This type of merger is called a:

Answer 1

7 - Mergers and Acquisitions (Part 1)1.Etco Energy and Baltic Energy have decided to merge. Both companies provide similar productsand services. This type of merger is called a: a.Diagonal Mergerb.Conglomeratec.Horizontal Mergerd.Vertical MergerAnswer = c: Horizontal mergers involve companies selling similar products and services.2.Synergy values are the additional values that companies realize through a merger andacquisition. Synergy values can take three forms. Generally speaking, the most significant andcommon form of synergy is: a.Higher Cost of Capitalb.Lower Expenses and Costc.Higher Production Efficiencies