Legal Definitions - vertical merger

A vertical merger is a type of merger that occurs between two businesses that operate at different levels of the same product's supply chain. For example, a manufacturer merging with a retailer. This type of merger is different from a horizontal merger, which occurs between two businesses that operate at the same level of the supply chain, such as two manufacturers of the same product.

One example of a vertical merger is the merger between Amazon, an online retailer, and Whole Foods, a grocery store chain. Amazon, as an online retailer, operates at a different level of the supply chain than Whole Foods, a grocery store chain. By merging, Amazon can expand its reach in the grocery market and gain access to Whole Foods' physical stores.

Another example of a vertical merger is the merger between Comcast, a cable company, and NBCUniversal, a media company. Comcast, as a cable company, operates at a different level of the supply chain than NBCUniversal, a media company. By merging, Comcast can gain access to NBCUniversal's content and expand its offerings to its cable subscribers.