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Horizontal Mergers Essay

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A horizontal mergers refers to the combination of two companies that involved in the same business line. In others words, horizontal mergers occurred when there are two companies with competitive relationship (competitors) combine together. Horizontal mergers enables the firms gain the competitive advantage that can create more firm’s value. Besides this, the companies that merged together in same business line tends to gain more synergies and potential market share. Horizontal mergers is often applied by large companies that attempt to create more efficient economies of scale (Investopedia, 2017). According to Peavler (2017), horizontal mergers has applied successfully in banking industry over the past 30 years. The deregulation act in year

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