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Great expectations but poor results: financial and social performance of the T oscana Energia merger

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  • Patricia Bachiller
  • Giuseppe Grossi

Abstract

This article investigates the importance of mergers in the public sector , analysing the case of T oscana Energia—a gas supplier in Italy. T oscana Energia was formed by merging three entities. There was no improvement in financial performance after the merger. Realistic merger benefits include competitive gains and, in this case, a better deal for consumers. P oliticians under pressure to merge should insist on the public sector being the majority owner in utilities. The best merger outcomes are of smaller municipal enterprises.

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  • Patricia Bachiller & Giuseppe Grossi, 2012. "Great expectations but poor results: financial and social performance of the T oscana Energia merger," Public Money & Management, Taylor & Francis Journals, vol. 32(1), pages 69-74, January.
    • Handle: RePEc:taf:pubmmg:v:32:y:2012:i:1:p:69-74
    DOI: 10.1080/09540962.2012.643067
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