The process of mergers and acquisitions as a form of integration is a demanding choice for a company in a dynamic capital market. Mergers and acquisitions as forms of development for the company play a key role in order for the company to be able to compete in the European and world market for the placement of goods or delivery of services. Mergers and acquisitions are a phenomenon of the developed capitalist world. A merger is an association of two or more companies. When two or more companies merge, a new company is created. Mergers create an organizational structure with unified control and management, and strategic alliances create a structure with joint control. An enterprise that merges another enterprise into its ownership should be significantly larger in size than the target enterprise. The difference between a merger and a merger is that in a merger, the acquiring company continues to exist and the merged company or companies cease to exist. When Vodafone as a smaller British corporation launched a successful cross-border hostile takeover bid for Mannesmann, it was the first time a successful hostile takeover was launched against a large German corporation by a foreign company. The merger of Vodafone with Mannesmann is considered horizontal, as both companies operate in the telecommunications industry. Merging the two entities reduces the number of competing companies by one, while increasing industrial concentration.