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Vertical Merger Case Study

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selling firms are absorbed by the buying firm” clearly gives the most simple definition of what truly merger and acquisitions is, with an attempt of defining mergers I would briefly state the consistently discussed types of mergers for which are:
Merger and Acquisition are classified into four types which can be explained below:
• Horizontal
• Vertical
• Conglomerate and
• Concentric mergers
Horizontal Merger:
This is a type of merger where a competing firm within the same industry (any by implication similar product) and same level of operation. The principal objective of horizontal merger is expansionary motive. Firms in the same line of business compete with each other for share of the market. One good example of horizontal acquisition is the acquisition as example, Standard Trust Bank merged with United Bank for Africa Plc. and Continental Trust Bank because they share the same resource. Horizontal mergers have been the most important and prevalent form of mergers in Nigeria.
Vertical Merger:
According to Lipczynski (2004: 229) “A vertical merger refers to the expansion of firms caused either by mergers between two firms involved at successive stages of the production process or by firms developing their own vertical operations”. Most firms choose a vertical …show more content…

The main objective of the reforms is to move the Nigerian economy forward and to strengthen the banking system in order to facilitate development. The first phase of the reforms is designed to ensure a diversified, strong and reliable banking sector, which will ensure the safety of depositors’ money, play active developmental roles in the Nigerian economy and become competent and competitive players both in the African and global financial systems; while the second phase involved encouraging the emergence of regional and specialized banks (Okagbue and Aliko, 2005:

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