vertical merger

A vertical merger is a business strategy where a company combines with another company that operates at a different stage of production or distribution within the same industry. This means a company might merge with a supplier (backward integration) or a customer (forward integration). The goal is to control more of the production process, from raw materials to the final sale, which can help maximize profits. For example, an oil company might own wells, refineries, and gas stations. This contrasts with horizontal mergers, where companies at the same stage of production combine. The Celler-Kefauver Act of 1950 in the U.S. aimed to prevent mergers, including vertical ones, that could reduce competition.1234