Go to Statistics Portal

VERTICAL MERGER

Statistics Directorate    
Definition:
A Vertical merger is a merger between firms operating at different stages of production, e.g., from raw materials to finished products to distribution. An example would be a steel manufacturer merging with an iron ore producer.

Context:
Vertical mergers usually increase economic efficiency, although they may sometimes have an anticompetitive effect.

Source Publication:
Glossary of Industrial Organisation Economics and Competition Law, compiled by R. S. Khemani and D. M. Shapiro, commissioned by the Directorate for Financial, Fiscal and Enterprise Affairs, OECD, 1993.

Cross References:
Conglomerate merger
Horizontal merger
Merger

Hyperlink:
http://www.oecd.org/dataoecd/8/61/2376087.pdf

Statistical Theme: Financial statistics

Created on Thursday, January 3, 2002

Last updated on Monday, March 17, 2003