Horizontal integration

The merger of two companies working in the same stage of the supply chain within the same or different industries. Horizontal integration can also refer to the expansion of a company into slightly different products or services from the ones it currently provides. This can help to strengthen market share and lower production costs through economies of scale. However, horizontal integration is regulated by the competition authorities so one company does not come to dominate the market to the detriment of consumers.

This definition is for general information purposes only