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The European M&A industry: Trends, patterns and shortcomings

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  • Campa, Jose M.

    (IESE Business School)

  • Moschieri, Caterina

    (IESE Business School)

Abstract

This paper provides a comprehensive overview of the process of European mergers and acquisitions. We characterize the main features of M&A activity in Europe in the period 2001-2007. We review the process of M&A regulatory integration and patterns of activity. Most European M&As still take place among domestic firms, although cross-border transactions are larger in value and have been slightly increasing, especially in regulated industries. Transactions are likely to be friendly, partially negotiated via public tender offers and private deals, and paid in cash, especially for smaller deals. Competing bids are still fairly rare and less likely to be completed. Target shareholders obtain an average premium of around 20% and this premium is slightly declining with deal size. Regulatory differences are large, particularly in the application of takeover regulations, and uncertainty persists in the predictability of the national regulatory agencies.

Suggested Citation

  • Campa, Jose M. & Moschieri, Caterina, 2008. "The European M&A industry: Trends, patterns and shortcomings," IESE Research Papers D/762, IESE Business School.
    • Handle: RePEc:ebg:iesewp:d-0762
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    References listed on IDEAS

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    Cited by:

    1. Aleksander Buczek, 2016. "The time to completion of a legal merger: General concepts, statistical analysis and the case of Poland," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 26(1), pages 19-44.
    2. Kim, Yongtae & (Nancy) Su, Lixin & (Stephen) Zhou, Gaoguang & (Kevin) Zhu, Xindong, 2020. "PCAOB international inspections and Merger and Acquisition outcomes," Journal of Accounting and Economics, Elsevier, vol. 70(1).
    3. Mateev, Miroslav, 2017. "Is the M&A announcement effect different across Europe? More evidences from continental Europe and the UK," Research in International Business and Finance, Elsevier, vol. 40(C), pages 190-216.
    4. Fabrice Roth, 2012. "Crise et régulation des marchés financiers : Quel impact sur les formes mutuelles dans l'assurance ?," Working Papers halshs-00692342, HAL.

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    Keywords

    European cross-border; domestic merger; acquisitions; M&A trends;
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