Discussion
Daimler-Benz's acquisition of Chrysler is an example of:
(I) Horizontal merger
(II) Conglomerate merger
(III) Cross-border merger
(IV) Vertical merger
Answer: C
Correct answer: I and III only
Daimler-Benz and Chrysler were both motor manufacturers, so the merger was horizontal; and Daimler was German while Chrysler was American, so it was also cross-border. Both descriptions apply at once, which is why the answer combines them. It was certainly not vertical or conglomerate, the two firms making the same kind of product.
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