What are the different types of Mergers?

1. Horizontal Mergers are between firms who operate in the same industry, often as competitors offering the same good/service. 

For example, the acquisition of Daksh by IBM in the BPO sector.

2. Vertical Mergers are between two firms operating at different levels within an industry's supply chain. 

For example, the merger of Reliance and FLAG Telecom Group.

3. Conglomerates are mergers between firms that are involved in totally unrelated businesses.

For example, the merger of L&T (infrastructure developer) and Voltas Ltd (electronics company).

Types of Conglomerates:

Pure Conglomerates are mergers that involve firms that have nothing in common.

Mixed Conglomerate are mergers that involve firms looking for product/market extensions

4. Product Extensions are mergers between two companies that deal in related products and operate in the same market. 

For example, Mahindra & Mahindra Limited (Indian automobile manufacturing company) acquired a German company, Schoneweiss (forging company).

5. Market Extensions are mergers between two companies that deal in the same products in different markets. 

For example, the merger of Kraft Foods (food manufacturing company) and Cadbury (confectionery company).

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