DBC 2340 - Horizontal Acquisition

 

The Banking Tutor 

Daily Banking Concept -  2340 

Horizontal Acquisition 

A horizontal acquisition occurs when one company acquires  another company in the same industry and works at the same production stage. The new entity may be well positioned because of its increased market share or scalability than the standalone companies combined to form it. Horizontal acquisitions expand the capacity of the acquirer, but the basic business operations remain the same,  unlike an acquisition that creates a wholly different company.