Advantages, The new, larger business can dominate the market as competition will be vastly reduced., The new business can benefit from economies of scale e.g. buying in bulk to reduce price., Due to reduced competition, the new larger business can raise prices, increasing profit., It can remove a competitor from the market., Disadvantages, The merger/ takeover may breach ‘competition’ regulations., Quality may suffer due to lack of competition., Customers may have to pay higher prices for the same goods.

Horizontal Integration

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