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Sony Corp and Ericsson Merge What are merges and why do they happen? A merge is when two companies become one and combine clients, assets, and debts. There are several different types of merges including horizontal, vertical, backward vertical and lateral merges. 3. A horizontal merger is one where two businesses in exactly the same line of business or stage of production merge with on another, for example if two hairdressers joined together. A forward vertical merger is where a business merges with a business at the next stage of the production process, for example a business making furniture may merge with the retail outlet selling the furniture. Backward vertical merger is where a business merges with a business at the previous stage of the production process, for example the business making the furniture may merge with the business that supplies the wood and parts for the furniture. A lateral merger...

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