A product extension merger is a type of merger in which two (or more) companies which offer similar products fuse into a single company or group. Companies competing in the same space may merge in order to combine their product lines and offer customers a broader range.
Example of a product extension merger:
A retailer which specializes in the sale of computers may merge with another retailer which specializes in the sale of mobile phones to form a new retailer or retail group which services both computer and mobile phone customers.
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