The study looks at how merging companies buying inputs from a few suppliers affects their profits under competition. It explores different types of input supplier relationships and how they impact merger profitability. For suppliers linked to specific plants, merging is more profitable than facing set input prices. Surprisingly, being in a merger might be better than staying independent. However, if suppliers are linked to individual companies, the benefits of merging change. The findings show that depending on the input supplier type, participating in a merger can be more advantageous or not. Overall, the research suggests that in an international competition setting, mergers involving companies from different countries are probable.