New trends in mergers and acquisitions: Idiosyncrasies of the European market

摘要

While policy makers link the recent increase of M&A activity in Europe to the benefits of European legislation and European institutions to create a fertile ground for acquisitions in Europe, others deny the benefit of regional integration. This study evaluates the characteristics and the key determinants of the likelihood of completion of M&As in the European Union between 1997 and 2007. The results of this study suggest that M&As in Europe feature unique characteristics, while still suffering from country-specific challenges. In Europe the deal attitude and the presence of competing bids are more important for the completion of a deal than the deal origin, the payment method, or industry regulation. The reported idiosyncrasies of M&A in Europe seem to arise not merely from European regulations about acquisitions, but mostly from the structural characteristics of the European business environment.