Introduction: M&A and privatization in developing countries: -changing ownership structure and its impact on economic performance-

摘要

Mergers and Acquisitions (M&As) are operations through which firms combine or acquire assets. M&As are economically relevant if they promote massive reallocation of resources in a short period of time, both within and across industries and regions, and potentially leading to wide-ranging institutional and organizational changes. The present international M&A wave represents an event of such high intensity. It is expected that M&As will lead to growth of firms, greater opportunities in new markets, leading to the expansion of production and profits. M&As do not add new productive assets unlike greenfield investments, but they still may create values by enhancing efficiencies through: generating economies of scale/scope, internalizing vertical/horizontal transaction costs, and creating new combinations of technology and products. In short, M&As provide opportunities for replacing inefficient capital owners and management, thus enabling better use of productive assets.