Merger means when two or more company combined with each other and either make a single entity or one company lose its entity and other company continued his business. Horizontal merger - Two companies that are in direct competition and share the same product lines and markets. Vertical merger - A customer and company or a supplier and company. Think of a cone supplier merging with an ice cream maker. E.g: Bank of Karad ltd with Bank of India is an example of merge of bank.