Answer (C) is correct . A vertical merger is the combination of a firm with one or more of its suppliers or customers. The acquiring firm remains in business as a combination of the two merged firms. The chain of gasoline stations is acquiring an oil refinery, which is a supplier. Therefore, this is a vertical merger.
Answer (A) is incorrect because A conglomerate merger involves the combination of two firms in unrelated industries.
Answer (B) is incorrect because A white knight is a firm from which the target firm seeks a competitive offer to avoid being acquired by a less desirable suitor.
Answer (D) is incorrect because Horizontal mergers combine companies in the same industry.
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