What type of merger involves a buyer and seller in the same industry?

A horizontal merger occurs when two companies that operate in the same industry and are often direct competitors come together. This type of merger typically aims to consolidate resources, reduce competition, increase market share, and achieve economies of scale. For example, if two telecom companies merge, they would combine their customer bases and technology to strengthen their market position.

In contrast, a vertical merger involves companies at different stages of the supply chain within the same industry, such as a manufacturer merging with a supplier. A conglomerate merger refers to the combination of companies that operate in completely different industries, often to diversify portfolios. A strategic merger, while it might involve companies in the same industry, is broader and focuses on long-term advantages rather than just the competitive overlap seen in horizontal mergers. Therefore, the specificity of being in the same industry makes the choice of horizontal merger the most accurate answer.