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Suppose that a manufacturer of steel bridge beams (BridgeCo) acquires its main supplier of the steel (SteelCo) used to make the beams. After the merger is completed, the only surviving entity is BridgeCo. This is best described as a:

A)
subsidiary merger.
B)
vertical merger.
C)
horizontal merger.


This is best described as a vertical merger, since BridgeCo is purchasing a company from which it gets production inputs. It could also be described as a statutory merger, since only the acquiring firm is in existence following the combination.

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Which of the following is NOT a commonly used merger classification describing forms of integration?

A)
Consolidation.
B)
Regulatory merger.
C)
Subsidiary merger.


Regulatory merger is not a commonly used merger classification. Both remaining answers are commonly used to describe the form of integration following a merger.

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