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The Consolidation Of The Global Brewing Industry And Wealth Effects From Mergers And Acquisitions

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  • Ramit Mehta
  • Dirk Schiereck

Abstract

The brewing industry has recently experienced increased merger activity. This paper analyzes the shortterm wealth effects of horizontal mergers and acquisitions on acquirers in the brewing industry. Based on a sample of 69 takeover announcements between 1998 and 2010, significant positive announcement returns were identified. In addition, the study finds significant positive returns for domestic transactions as well as cross-border deals involving targets in emerging markets. Other identified drivers of shortterm success include transaction size, acquirer size and the target’s public status. Furthermore, significant negative rival effects are identified across leading brewing groups, when missing a potential M&A opportunity.

Suggested Citation

  • Ramit Mehta & Dirk Schiereck, 2012. "The Consolidation Of The Global Brewing Industry And Wealth Effects From Mergers And Acquisitions," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 6(3), pages 67-87.
    • Handle: RePEc:ibf:ijbfre:v:6:y:2012:i:3:p:67-87
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    References listed on IDEAS

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    More about this item

    Keywords

    Mergers and Acquisitions; Brewing Industry; Announcement Returns; Acquirers; Industry Rivals; Event Study;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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