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Determinants of Mergers and Acquisitions in the Energy Industry - Evidence from the European Market

Abzahd, Omar; Sahagun, Ulises and Meyerson, Peter (2009)
Department of Business Administration
Abstract
The energy industry in Europe has been exposed to major changes since the early 1990s. What effects this changing market scene has had on the companies active in the energy industry is an interesting research area. We aimed in this thesis to investigate what were the
determinants behind firms engaging in M&A transactions, between the years 1995 and 2005, based on theories and hypotheses that attempt to explain these
strategic decisions. Our results find that some established theories help explain
some of the merger motives. Both acquirers and targets tend to
be firms with established positions in the market and larger
enterprise values. In addition, firms with low expected growth
opportunities have a stronger tendency to be active in the... (More)
The energy industry in Europe has been exposed to major changes since the early 1990s. What effects this changing market scene has had on the companies active in the energy industry is an interesting research area. We aimed in this thesis to investigate what were the
determinants behind firms engaging in M&A transactions, between the years 1995 and 2005, based on theories and hypotheses that attempt to explain these
strategic decisions. Our results find that some established theories help explain
some of the merger motives. Both acquirers and targets tend to
be firms with established positions in the market and larger
enterprise values. In addition, firms with low expected growth
opportunities have a stronger tendency to be active in the
takeover market. Finally, we find that relatively high amounts
of cash are positively related to being an acquirer. (Less)
Please use this url to cite or link to this publication:
author
Abzahd, Omar; Sahagun, Ulises and Meyerson, Peter
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Mergers and Acquisitions, determinants of M&A, European Energy Industry, Management of enterprises, Företagsledning, management
language
Swedish
id
1437325
date added to LUP
2009-07-03 00:00:00
date last changed
2012-04-02 17:36:08
@misc{1437325,
  abstract     = {The energy industry in Europe has been exposed to major changes since the early 1990s. What effects this changing market scene has had on the companies active in the energy industry is an interesting research area. We aimed in this thesis to investigate what were the
determinants behind firms engaging in M&A transactions, between the years 1995 and 2005, based on theories and hypotheses that attempt to explain these
strategic decisions. Our results find that some established theories help explain
some of the merger motives. Both acquirers and targets tend to
be firms with established positions in the market and larger
enterprise values. In addition, firms with low expected growth
opportunities have a stronger tendency to be active in the
takeover market. Finally, we find that relatively high amounts
of cash are positively related to being an acquirer.},
  author       = {Abzahd, Omar and Sahagun, Ulises and Meyerson, Peter},
  keyword      = {Mergers and Acquisitions,determinants of M&A,European Energy Industry,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Determinants of Mergers and Acquisitions in the Energy Industry - Evidence from the European Market},
  year         = {2009},
}