Describe the three types of mergers and give real-world examples.

A horizontal merger occurs between two competitors that sell similar products in the same geographic market. A real-world example of such mergers is Heinz purchasing Kraft. A vertical merger occurs between firms at different stages of the production process. Vertical mergers are mergers between firms that have buyer-seller relationships. A real-world example of such mergers are PepsiCo's mergers with Pizza Hut, Taco Bell, and KFC. PepsiCo supplies soft drinks to each of these fast-food outlets. A conglomerate merger is any merger that is not horizontal or vertical; in general, it is the combination of firms in different industries or firms operating in different geographic areas. Conglomerate mergers can extend the line of products sold, extend the territory in which products are sold, or combine totally unrelated companies. A real-world example of conglomerate mergers is the merger between Amazon (e-commerce)and the Whole Foods Markets (supermarkets).