A conglomerate merger is one where the two firms have
ACommon customers
BThe same suppliers
CEqual market share
DNo strategic relatedness
Answer & Solution
Correct answer: D. No strategic relatedness
A conglomerate merger joins firms with no strategic relatedness, so the usual aim is diversification.
Keep practising Mergers Acquisitions and Corporate Restructuring
Browse all Mergers Acquisitions and Corporate Restructuring questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
In a management buy-in (MBI), the shares are bought bySenior LBO debt is secured and carriesWhich target suits an LBO best?Debt is cheaper than equity in an LBO since interestIn a leveraged buyout, the target's assets often serve asWhich US law requires shareholder votes on future golden parachutes?A golden parachute pays an executive onA gray knight is a bidder seen as