Detailed Answer
(b) The requirement is to identify the type of merger.
Answer (b) is correct because a vertical merger is a merger between
a firm and one of its suppliers or customers. A bottle manufacturer
can supply bottles to be used by a soft drink producer.
Answer (a) is incorrect because a horizontal merger is a combination
of two firms producing the same type of good or service.
Answer (c) is incorrect because a congeneric merger is a merger
of firms in the same industry, but the two firms do not have a
customer or supplier relationship (as in vertical merger). Answer
(d) is incorrect because a conglomerate merger is a merger
of companies in totally different industries.
