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If Nike and Adidas merge, it would be a
merger

Sagot :

If Nike and Adidas merge, it would be a horizontal merger

What is a merger?

A merger can be described as the absorption of one firm by another firm. When a merger occurs, one of the firms involved in the merger ceases to exist. Only one firm would exist.

What is an horizontal merger?

An horizontal merger occurs between firms in the same industry. The firms are usually competitors.

Reasons for an horizontal merger include:

  1. To increase the market power of a firm
  2. To achieve economies of scale.

To learn more about mergers, please check: https://brainly.com/question/1086715

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