Question

In 2014, Japanese liquor company Suntory Holdings Ltd. acquired U.S. bourbon maker Beam Inc., for $14 billion. Is this a horizontal or vertical acquisition? How do you suppose Beam's nationality affected Suntory's decision?

Answer 1

It is a type of vertical acquisition because the industry which are being acquired are different and not same.

Horizontal merger is one in which two companies which are into the same product and working at the similar level are merged or acquired while vertical acquisition is one in which the company which is working at the different product level are merged or acquired so liquor and bourbon making are part of the same industry but working at different levels so it is a type of vertical acquisition.

yes, nationality also affected to a large extent because it will have a different market and it will also have the product diversification in other another country. it will help in expansion of the market and gathering of new potential consumers in other country.