What type of merger involves companies at different levels of the supply chain?

A vertical merger occurs when companies at different levels of the supply chain combine operations. This typically involves one company that produces a product merging with another company that either supplies raw materials to that product or distributes it. For example, a manufacturer may merge with a supplier of raw materials or a retailer that sells its products. The purpose of such mergers is often to increase efficiency, reduce costs, control the supply chain, and enhance the company's competitive advantage.

In contrast, a horizontal merger involves companies at the same level of the supply chain, while a conglomerate merger involves firms in unrelated businesses. A geographic merger focuses on expanding into new locations rather than different levels of supply chain processes, which further distinguishes it from vertical mergers.