Answer:
False
Explanation:
A merger refers to a corporate agreement between two firms who come together combining assets and resources and working as a single identity to reap synergestic gains.
A vertical merger refers to a form of merger wherein the purpose is to provide supply chain functions with respect to a common product or service. Usually in a vertical merger, the company merges with it's immediate supplier i.e provider of raw materials so as to reduce costs and to improve efficiency.
In the given case, the company is considering merging with it's supplier of inputs so as to make required components available as well as to improve quality. This is a case of vertical merger.
