Concept of horizontal, vertical, and conglomerate merger

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Reference no: EM1375038

Estimate whether integration between following types of companies would constitute a horizontal, vertical, or conglomerate merger. I took a guess, but am not sure as to the reasoning behind each. Can you clarify the types of mergers for me?

A food company and a drug company = conglomerate merger
A milk producer and a cheese producer = horizontal merger
A computer chip manufacturer and a silicon producer = vertical merger

Reference no: EM1375038

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