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Success Factors in European Energy Mergers and Acquisitions - An Event Study

Kück, Jens and Lukas, Björn (2008)
Department of Business Administration
Abstract
The main purpose of this thesis is to investigate the success factors of M&As in the European energy industry. Thus, the theoretical framework of this work covers both the structure of the European energy industry and the key success factors in M&As. In an event study analysis a total amount of 103 large-scale energy deals in the period between December 1996 and March 2008 are analysed. Acquirers that have been highly active in previous M&As show significantly lower stock
returns around the announcement day, showing that shareholders do not value a bidder’s experience in large energy deals. We also find some empirical evidence for M&As of similarly sized entities to be more successful. Another major finding is that corporate transactions... (More)
The main purpose of this thesis is to investigate the success factors of M&As in the European energy industry. Thus, the theoretical framework of this work covers both the structure of the European energy industry and the key success factors in M&As. In an event study analysis a total amount of 103 large-scale energy deals in the period between December 1996 and March 2008 are analysed. Acquirers that have been highly active in previous M&As show significantly lower stock
returns around the announcement day, showing that shareholders do not value a bidder’s experience in large energy deals. We also find some empirical evidence for M&As of similarly sized entities to be more successful. Another major finding is that corporate transactions within a single, regulated market deliver significantly higher returns. (Less)
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author
Kück, Jens and Lukas, Björn
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
M&A, Mergers, Acquisitions, Energy, Europe, Deregulation, Liberalisation, Utilities, Management of enterprises, Företagsledning, management
language
Swedish
id
1438432
date added to LUP
2008-12-12
date last changed
2012-04-02 17:22:52
@misc{1438432,
  abstract     = {The main purpose of this thesis is to investigate the success factors of M&As in the European energy industry. Thus, the theoretical framework of this work covers both the structure of the European energy industry and the key success factors in M&As. In an event study analysis a total amount of 103 large-scale energy deals in the period between December 1996 and March 2008 are analysed. Acquirers that have been highly active in previous M&As show significantly lower stock
returns around the announcement day, showing that shareholders do not value a bidder’s experience in large energy deals. We also find some empirical evidence for M&As of similarly sized entities to be more successful. Another major finding is that corporate transactions within a single, regulated market deliver significantly higher returns.},
  author       = {Kück, Jens and Lukas, Björn},
  keyword      = {M&A,Mergers,Acquisitions,Energy,Europe,Deregulation,Liberalisation,Utilities,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Success Factors in European Energy Mergers and Acquisitions - An Event Study},
  year         = {2008},
}