Horizontal integration

• Horizontal integration is the coming together of businesses at the same operating stage of production and in the same market
• An example of horizontal integration would be Wal-Mart's takeover of ASDA in 1999
• Horizontal integration is likely to create significant economies of scale and reduces the amount of competition in the market
• If the takeover or merger will result in a market of over 25% it is likely to be investigated by the Competition Commission