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Large mergers and acquisitions of European brewing groups-event study evidence on value creation

Author

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  • Oliver Ebneth

    (Brau Holding International GmbH & Co. KGaA, Denninger Strasse 165, D-81925 Munich, Germany)

  • Ludwig Theuvsen

    (Department of Agricultural Economics and Rural Development, University of Goettingen, Germany)

Abstract

Acquisitions have been the growing trend in recent years, giving brewers the opportunity to enhance their degree of internationalization and market share remarkably through diverse one-off deals. Larger brewers are faced with low prospects for volume growth in developed markets leading them to seek growth either via acquisition of other brewers or by aggressive participation in developing markets or both. This study employs event study analysis to examine 31 mergers and acquisitions among leading European brewing groups. Differences regarding the brewers' corporate success can be determined within the European peer group. The results are discussed by additionally comparing the performance of companies that experienced M&As and companies that did not. Managerial implications as well as future research propositions conclude this article. © 2007 Wiley Periodicals, Inc. Agribusiness 23: 377-406, 2007.

Suggested Citation

  • Oliver Ebneth & Ludwig Theuvsen, 2007. "Large mergers and acquisitions of European brewing groups-event study evidence on value creation," Agribusiness, John Wiley & Sons, Ltd., vol. 23(3), pages 377-406.
    • Handle: RePEc:wly:agribz:v:23:y:2007:i:3:p:377-406
    DOI: 10.1002/agr.20129
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    Cited by:

    1. Chistoph Niederhut-Bollmann & Ludwig Theuvsen, 2008. "Strategic management in turbulent markets: The case of the German and Croatian brewing industries," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 13(1), pages 63-88.
    2. Xinhua Mao & Jiahua Gan & Xilong Zhao, 2019. "Debt Risk Evaluation of Toll Freeways in Mainland China Using the Grey Approach," Sustainability, MDPI, vol. 11(5), pages 1-17, March.
    3. Ostapchuk, Igor & Gagalyuk, Taras & Curtiss, Jarmila, 2021. "Post-acquisition integration and growth of farms: the case of Ukrainian agroholdings," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(4), April.
    4. Matthias Heyder & Ludwig Theuvsen, 2008. "Strategic management in the German brewing industry: Are there still differences between East and West," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 13(1), pages 10-39.
    5. Reinhard Meckl & Falk Röhrle, 2016. "Do M&A deals create or destroy value? A meta-analysis," European Journal of Business and Economics, Central Bohemia University, vol. 11(2), pages 8901:11-890, June.
    6. Loretz, Simon & Oberhofer, Harald, 2014. "When Helping the Small Hurts the Middle: Beer Excise Duties and Market Concentration," Working Papers in Economics 2014-5, University of Salzburg.
    7. Ebneth, O. & Theuvsen, L., 2007. "Multinationality and Financial Performance: Findings from a Set of Listed Brewing Groups," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 42, March.
    8. Kevin N. Kim & Ani L. Katchova, 2022. "Agricultural bank acquisitions and postacquisition performance: An examination of the role of shared knowledge," Agribusiness, John Wiley & Sons, Ltd., vol. 38(4), pages 743-770, October.

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