Do you agree or disagree with this? Why or why not?

To expound on your points, businesses seeking growth and cost reductions acquire other companies or product lines through horizontal, vertical or related mergers and acquisitions, resulting in the integration of two or more companies. According to CFI Team, when companies undergo a horizontal merger, the underlying principle is to create value. A successful merger should create value in which combining the companies would be worth more than if each company were under independent ownership. Some additional reasons why companies merge horizontally include, to share complementary skills and resources, reshape the company's competitive scope by reducing intense rivalry, realize economies of scope, increase market share and reduce competition in the industry, further utilize economies of scale $($thus reducing costs$),$ increase diversification among others.