Japanese technology giant Sony has bought full control of mobile phone maker Sony Ericsson from Swedish telecoms equipment maker Ericssonmaking the mobile handset business a wholly-owned subsidiary of Sony.Ericsson said that the "synergies" between telecoms equipment and mobile phones were decreasing. The transaction also includes a patent deal. Sony will get the five sets of patents that are essential to making the phones and a licensing agreement on any other intellectual property. This is an example of horizontal integration since Sony is going to get patents it needs to produce phones and rights of intellectual properties. The merge will benefit to both Sony and Sony Ericsson who are going to work together for better efficiency and more profits. ( Sony will now be able to integrate its phone division to its gadgets)
