Question

Identify the type, purpose, and example of the merger discussed below: "Merger takes place between two companies that deal in the same products but in separate markets."
A. Horizontal Merger
B. Acquisition of Eagle Bancshares Inc. by the RBC Cetura
C. Acquisition of Mobiling telecom ne by Broadcom
D. Market extension Merger
E. Purpose to make sure that merging companies can get access to a bigger market and that ensures a bigger client base
Choose the correct answer from the options given below:

• A. B, A, C only
• B. B, D, C only
• C. B, E, C only
• D. B, D, E only

Hint:

Market extension mergers expand a company's market reach by combining operations in different geographic areas or markets.

Answer 1

The Correct Option is D

A market extension merger is a type of merger between companies that sell the same products but operate in different markets. The example given (B) refers to such a merger. The purpose (E) of these mergers is to gain access to a larger market.