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Question
P&G is a leading consumer goods company in the United States that has grown its business through a combination of international growth, alliances, acquisitions and mergers. In 2003, P&G acquired the beauty care company Wella to acquire products that would complement its current product. In 2004, P&G acquired AG-Hutchison Ltd to establish a stronger presence in the Chinese consumer goods products market. In 2005, P&G acquired Gillette, another consumer goods company, in a deal worth approximately $57 billion dollars.Since both P&G and Gillette are consumer products firms, this acquisition is best described as a
A) vertical merger.
B) horizontal merger.
C) market extension merger.
D) conglomerate merger.
Answer
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