yospaghetti

oh GOT IT now.
Only Clothing existed. Family was created with subdivisions Clothing (real company with Clothing assets), Food (just a holding co) and Drug (just a holding co). When Food Tree (the holding co) purchases it’s first Food Co, this is a conglomerate merger because the only real assets of Family are Clothing, and Clothing and Food are different.
That’s how I see it and this makes sense.
Putthing this question aside (but on the same topic), if a conglomerate merges with another firm, and the conglomerate has subsidiaries with the same line of business as the purchased firm, would this be considered a congolmerate merger or a horizontal merger (because you assume it is the subsidiares that will be merging)?