Cross–border mergers and acquisitions: an analysis of activity

Abstract

The paper attempts to provide an overview of cross-border mergers and acquisitions (M&As) activity. Over the last decade, most of the growth in international production has been via cross-border M&As rather than greenfield FDI. There is the M&As waves of mergers, demergers and then mergers again as companies adapt to the new global environment. Under exceptional circumstances (the economic/financial crises or privatizations) cross-border M&As can play a useful role. In particular, if the firms will face bankruptcy. The current global financial crisis and economic recession had a mitigating impact on cross-border M&As, the value of which sharply declined in the last quarter of 2008. An analysis of the research study show that all three groups of economies–developed and developing countries, and transition economies – incurred falls in worldwide M&As and regenerated their role in the global investment climate. Divestments are especially important during the crises.