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Mergers/Acquisitions and Restructuring in the EU Chemical Industry: Patterns and Implications

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  • Keith Chapman
  • Helen Edmond
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    Abstract

    CHAPMAN K. and EDMOND H. (2000) Mergers/acquisitions and restructuring in the EU chemical industry: patterns and implications, Reg. Studies 34, 753-767. High levels of merger/acquisition activity, especially international transactions, have been a characteristic of the global economy since the mid - 1980s. A significant proportion of this activity has been focused on the EU where it has been stimulated by economic integration. Research into the phenomenon has been limited by data availability. Information from a Royal Society of Chemistry database is used to examine mergers/acquisitions in the European chemical industry. This is a key sector of the European economy which has accounted for a substantial proportion of mergers/ acquisitions in manufacturing. Attention is focused upon an important period of change immediately before and after the creation of the Single European Market (i.e. 1986-95). The connections between mergers/acquisitions, corporate restructuring and industry restructuring are explored together with implications for the changing geography of the EU production system. Mergers/acquisitions are both a symptom and, more importantly, a cause of accelerated change in this system as they facilitate the transformation of corporate identities. Some of the wider consequences of such transformations are addressed by exploring the geographical pattern of cross - border mergers/acquisitions in the EU chemical industry. A systematic transfer of corporate control is demonstrated as companies based in northern Europe have acquired those based in southern Europe. Reasons for this pattern are identified together with implications of post - merger/acquisition restructuring for places and, more generally, for economic and social cohesion within the EU. The need for more detailed empirical studies of corporate restructuring is stressed. CHAPMAN K. et EDMOND H. (2000) Fusions/acquisitions et restructuration de l'industrie chimique dans l'Ue: tendances et retombees, Reg. Studies 34, 753-767. Depuis le milieu des annees 1980, l'economie mondiale se caracterise par de nombreuses fusions/acquisitions, surtout des operations internationales. Encouragee par l'integration economique, une proportion non-negligeable de ces operations s'est focalisee sur l'Ue. La disponibilite des donnees limite la recherche sur ce phenomene. A partir d'une base de donnees provenant de l'Academie de chimie (Royal Society of Chemistry), on examine les fusions/acquisitions dans l'industrie chimique europenne. C'est un secteur-cle de l'economie europeenne qui a assure une proportion considerable des fusions/acquisitions industrielles. On attire l'attention sur une periode transitoire, juste avant et apres le moment ou le marche unique europeen arrive a echeance (a savoir, de 1986 a 1995). Les liens entre les fusions/acquisitions, la restructuration d'entreprise et la restructuration industrielle se voient examiner conjointement avec leurs retombees eventuelles sur la geographie du systeme de production europeen en pleine evolution. Les fusions/acquisitions sont ala fois des symptomes et des causes du changement accelere de ce systeme au fur et a mesure qu'elles permettent la transformation de l'image de marque des entreprises. On aborde certaines des retombees eventuelles plus importantes de cette evolution en examinant la distribution geographique des fusions/acquisitions transfrontalieres dans l'industrie chimique de l'Ue. Il s'avere un transfert du controle d'entreprise systematique au fur et a mesure que les entreprises situees dans le nord de l'Europe ont acquis celles situees dans le sud. On identifie les raisons d'une telle distribution conjointement avec les retombees eventuelles de la restructuration a la suite des fusions/acquisitions pour des endroits et, de facon plus generale, pour la cohesion economique et sociale au sein de l'Ue. On souligne la necessitedes etudes empiriques plus approfondies de la restructuration d'entreprise. CHAPMAN K. und EDMOND H. (2000) Fusionen/Ubernahmen und Umstrukturierung der chemischen Industrie in der EU: Muster und Implikationen, Reg. Studies 34, 753- 767. Hohe Quoten bei Fusionen/Ubernahmen sind seit der Mitte der achziger Jahre ein Merkmal der globalen Wirtschaft gewesen, besonders auf dem Gebiet der internationalen Transaktionen. Ein bedeutender Teil dieser Unternehmungen betraf die EU, wo der wirtschaftliche Zusammenschluss sie nahelegte. Untersuchungen dieses Phanomens waren durch den Mangel an verfugbaren Daten beschrankt. Hier werden Informationen einer Datenbank der Royal Society of Chemistry dazu benutzt, Fusionen/Ubernahmen in der chemischen Industrie Europas zu untersuchen. Sie stellt einen Schlusselsektor der europaischen Wirtschaft dar, und ist fur einen wesentlichen Teil der Fusionen/Ubernahme in der herstellenden Industrie verantwortlich. Die Aufmerksamkeit konzentriert sich auf einen wichtigen Zeitraum der Umstellung unmittelbar vor und nach der Schaffung des Einheitlichen Europaischen Marktes (1986-1995). Es werden sowohl Verbindungen zwischen Fusionen/Ubernahmen, korporativer Umstrukturierung und industrieller Umstrukturierung untersucht als auch die Implikationen fur die im Wandel begriffene Geographie der Produktionssystem der EU. Fusionen/Ubernahmen sind Symptom, und, was noch wichtiger ist, auch Ursache des beschleunigten Wandels in dem System, indem sie die Transformation korporativer Identitaten erleichtern. Ausgewahlte umfassendere Konsequenzen solcher Transformationen werden mit Hilfe einer Untersuchung der geographischen Muster grenzuberschreitende Fusionen/Ubernahmen in der chemischen Industrie der EU behandelt. Es wird eine systematische Ubernahme der korporativen Leitung aufgezeigt, in der nordeuropasche Gesellschaften die in Sudeuropa beheimateten erworben haben. Grunde fur dieses Muster und fur Implikationen der Umstrukturierung von Orten in Folge von Fusion/ Ubernahme sowie fur wortschaftlichen und gesellschaftlichen Zusammenhalt in der EU werden herausgestellt. Der Bedarf an ins Einzelne gehenden empirischen Studien korporativer Umstrukturierung wird betont.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Regional Studies.

    Volume (Year): 34 (2000)
    Issue (Month): 8 ()
    Pages: 753-767

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    Handle: RePEc:taf:regstd:v:34:y:2000:i:8:p:753-767

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    Related research

    Keywords: Chemical Industry; Corporate Restructuring; External Control; Industry Restructuring; Mergers Acquisitions;

    References

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    Cited by:
    1. Parhankangas, Annaleena & Arenius, Pia, 2003. "From a corporate venture to an independent company: a base for a taxonomy for corporate spin-off firms," Research Policy, Elsevier, vol. 32(3), pages 463-481, March.

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