The merger of two companies producing the same type of products is an example of

The merger of two companies producing the same type of products is an example of horizontal integration. Horizontal integration refers to the process of two or more companies at the same level of the production process coming together to form a single entity. In this case, the two companies producing the same type of products are at the same level of production, and their merger will help to reduce competition and increase market share. By merging, they can increase their economies of scale, improve efficiency, and reduce duplication of efforts, leading to improved profits for the new entity.