Mergers and acquisitions in the global food processing industry in 1986-2006
Food systems around the world experienced increased merger and acquisition (M&A) activity over the past decades. Based on a sample of 13,911M&A attempts worldwide during 1986-2006, this study provides an analysis of major determinants of M&A completion in the food processing industry. Friendly attitude, cash payment and experience with M&As emerge as strong deal facilitators. Bidding competition, pursuit of parallel transactions, target subsidiary status and acquirer public status are the most important deal breakers. Unlike the lenient antitrust approach of the Reagan administration, the 1998 UK Competition Act and various directives and regulations on food safety and quality associated with the completion of the internal European market in 1992 facilitated M&A completion. In contrast, the beginning of the Economic and Monetary Union, as marked by the introduction of the Euro in 1999, had a strong negative effect on completion likelihood. This study identifies substantial regional differences. Completion of M&As that involve Asian firms depends on distinct factors. Results for NAFTA are mostly in line with predictions derived from general economic theory, compared to other regions.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert L. Conn & Andy Cosh & Paul M. Guest & Alan Hughes, 2005.
"The Impact on UK Acquirers of Domestic, Cross-border, Public and Private Acquisitions,"
Journal of Business Finance & Accounting,
Wiley Blackwell, vol. 32(5-6), pages 815-870.
- Robert L Conn & Andy Cosh & Paul M Guest & Alan Hughes, 2003. "The Impact on U.K. Acquirers of Domestic, Cross-border, Public and Private Acquisitions," ESRC Centre for Business Research - Working Papers wp276, ESRC Centre for Business Research.
- Bittlingmayer, George & Hazlett, Thomas W., 2000. "DOS Kapital: Has antitrust action against Microsoft created value in the computer industry?," Journal of Financial Economics, Elsevier, vol. 55(3), pages 329-359, March.
- Ken C. Yook, 2003. "Larger Return to Cash Acquisitions: Signaling Effect or Leverage Effect?," The Journal of Business, University of Chicago Press, vol. 76(3), pages 477-498, July.
- Gregor Andrade & Mark Mitchell & Erik Stafford, 2001. "New Evidence and Perspectives on Mergers," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 103-120, Spring.
- Viaene, Jacques & Gellynck, Xavier, 1995. "Structure, Conduct and Performance of the European Food Sector," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 22(3), pages 282-95.
- Elke U. Weber & Christopher Hsee, 1998. "Cross-Cultural Differences in Risk Perception, but Cross-Cultural Similarities in Attitudes Towards Perceived Risk," Management Science, INFORMS, vol. 44(9), pages 1205-1217, September.
- Connor, John M. & Geithman, Frederick E., 1988.
"Mergers in the Food Industries: Trends, Motives and Policies,"
Agricultural and Applied Economics Association, vol. 3(2).
- John M. Connor & Frederick E. Geithman, 1988. "Mergers in the food industries: Trends, motives, and policies," Agribusiness, John Wiley & Sons, Ltd., vol. 4(4), pages 331-346.
- Shleifer, Andrei & Vishny, Robert W, 1988. "Value Maximization and the Acquisition Process," Journal of Economic Perspectives, American Economic Association, vol. 2(1), pages 7-20, Winter.
- Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-29, May.
- Kwok Leung & Rabi S Bhagat & Nancy R Buchan & Miriam Erez & Cristina B Gibson, 2005. "Culture and international business: recent advances and their implications for future research," Journal of International Business Studies, Palgrave Macmillan, vol. 36(4), pages 357-378, July.
- Wong, Pauline & O'Sullivan, Noel, 2001. " The Determinants and Consequences of Abandoned Takeovers," Journal of Economic Surveys, Wiley Blackwell, vol. 15(2), pages 145-86, April.
- Yuanzhi Luo, 2005. "Do Insiders Learn from Outsiders? Evidence from Mergers and Acquisitions," Journal of Finance, American Finance Association, vol. 60(4), pages 1951-1982, 08.
- Jorde, Thomas M & Teece, David J, 1990. "Innovation and Cooperation: Implications for Competition and Antitrust," Journal of Economic Perspectives, American Economic Association, vol. 4(3), pages 75-96, Summer.
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
- Moerland, Pieter W., 1995. "Alternative disciplinary mechanisms in different corporate systems," Journal of Economic Behavior & Organization, Elsevier, vol. 26(1), pages 17-34, January.
- Mergenthaler, Marcus & Weinberger, Katinka & Qaim, Matin, 2009. "The food system transformation in developing countries: A disaggregate demand analysis for fruits and vegetables in Vietnam," Food Policy, Elsevier, vol. 34(5), pages 426-436, October.
- Adams, Wendi L. & Love, H. Alan & Capps, Oral, Jr., 1997. "Structural Analysis Of Mergers And Acquisitions In The Food Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 28(2), July.
- Weber, Elke U. & Hsee, Christopher K. & Sokolowska, Joanna, 1998. "What Folklore Tells Us about Risk and Risk Taking: Cross-Cultural Comparisons of American, German, and Chinese Proverbs, , ," Organizational Behavior and Human Decision Processes, Elsevier, vol. 75(2), pages 170-186, August.
- Pickering, J F, 1983. "The Causes and Consequences of Abandoned Mergers," Journal of Industrial Economics, Wiley Blackwell, vol. 31(3), pages 267-81, March.
- Adesoji Adelaja & Rodolfo Nayga & Zafar Farooq, 1999. "Predicting mergers and acquisitions in the food industry," Agribusiness, John Wiley & Sons, Ltd., vol. 15(1), pages 1-23.
- Loader, Rupert & Hobbs, Jill E., 1999. "Strategic responses to food safety legislation," Food Policy, Elsevier, vol. 24(6), pages 685-706, December.
- C. Lanier Benkard, 2000. "Learning and Forgetting: The Dynamics of Aircraft Production," American Economic Review, American Economic Association, vol. 90(4), pages 1034-1054, September.
- Mulherin, J. Harold & Boone, Audra L., 2000. "Comparing acquisitions and divestitures," Journal of Corporate Finance, Elsevier, vol. 6(2), pages 117-139, July.
- Froot, Kenneth A., 1989. "Consistent Covariance Matrix Estimation with Cross-Sectional Dependence and Heteroskedasticity in Financial Data," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 24(03), pages 333-355, September.
- Moeller, Sara B. & Schlingemann, Frederik P. & Stulz, Rene M., 2004. "Firm size and the gains from acquisitions," Journal of Financial Economics, Elsevier, vol. 73(2), pages 201-228, August.
When requesting a correction, please mention this item's handle: RePEc:eee:jfpoli:v:36:y:2011:i:4:p:466-479. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.