Merits of integration / mergers:

  • Efficiency in the management of the firms results.
  • Full utilization of capacity due to increased production and profitability.
  • Reduces wasteful competition especially between firms producing similar products.
  • Marketing economies of scale will be enjoyed especially through lateral mergers.
  • Increased diversification within the firm instead of one product on the marker.
  • Guarantees survival of firms which were on the verge of collapsing.
  • It promotes forward and backward linkages especially through vertical merging.