Planning International Mergers and Acquisitions

In recent years acquisitions and mergers have become an increasingly important route to international expansion. In the decade 1946–57, the leading US multinationals for example made 194 acquisitions in Western Europe. In the next decade to 1967 the number rose to 1193.1 Most of these moves were, however, acquisitions rather than mergers. In Europe, a report sponsored by the EEC revealed that between 1961 and the first half of 1969 there were 1861 mergers and takeovers within the Community and only 257 between companies from countries in other communities. Non-Community companies made 820 acquisitions of EEC-based companies, while Community-based firms made 215 purchases abroad.2 While the leading firms have now mainly established themselves in major countries, fill-in acquisitions are still undertaken and newly emerging multinationals, including many of the largest firms in Western Europe and Japan, are also actively engaged in increasing their geographic coverage.