Cross-border mergers and acquisitions by oil and gas multinational enterprises: Geography-based view of energy strategy

Mergers and acquisitions (M&As) are increasingly being used in the business world, and this process plays an important role in economic theory and lays the foundations for sustainable business development. The global recovery in foreign direct investment (FDI) was strong in 2015, with global FDI flows jumping by 38%, their highest level since the global economic and financial crisis of 2008–2009. A surge in cross-border M&As to $721 billion, from $432 billion in 2014, was the principal factor behind the global rebound. These M&As were partly driven by very large corporate reconfigurations by multinational enterprises (MNEs), i.e. changes in legal or ownership structures, including shifting their headquarters for strategic reasons and tax inversions. This paper examines the key M&As stimulating strategic objectives and causes, and ways of this process, as well as the cross-border M&As market activity. The objective of this paper is to identify ways, purposes and reasons of M&As transactions, and to present the factors influencing this process and market activity. The object of this research is the M&As transactions market. Research methodology of this paper is based on scientific literature and statistical information systematic, comparative, logical and econometric analysis.

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The Institutional Influence on the Location Strategies of Multinational Enterprises from Emerging Economies: Evidence from China's Cross-border Mergers and Acquisitions

Management and Organization Review ◽

10.1017/mor.2016.21 ◽

2016 ◽

Vol 12 (3) ◽

pp. 425-448 ◽

Cited By ~ 28

Author(s):

Peter J. Buckley ◽

Pei Yu ◽

Qing Liu ◽

Surender Munjal ◽

Pan Tao

Keyword(s):

Mergers And Acquisitions ◽

Host Country ◽

Emerging Economies ◽

Multinational Enterprises ◽

Country Risk ◽

Cross Border ◽

Institutional Influence ◽

Location Strategies ◽

Chinese Multinational Enterprises

ABSTRACTThis study investigates the institutional influence on the location strategies of Chinese cross-border mergers and acquisitions (M&A) during the period 1985–2011 across 150 economies using Heckman's two-stage model. The results suggest that Chinese Multinational Enterprises (MNEs) are ‘shortsighted’ and show perverse behaviour towards host country risk when deciding on the location of host country and volume of investment undertaken through M&As, which may damage the firm's long-term profitability.

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Cross-Border Mergers and Acquisitions in the Oil and Gas Industry: An Overview

Energies ◽

10.3390/en13215580 ◽

2020 ◽

Vol 13 (21) ◽

pp. 5580

Author(s):

Şevkat Özgür ◽

Franz Wirl

Keyword(s):

Mergers And Acquisitions ◽

Oil And Gas ◽

Oil And Gas Industry ◽

Resource Base ◽

Future Directions ◽

Gas Industry ◽

Cross Border ◽

Recent Trends ◽

Specific Factors ◽

Legal Constraints

This paper surveys cross-border oil and gas mergers and acquisitions (M&A) transactions in recent years using a large sample of 18,179 transactions announced over the period 2000–2018. M&A activities depend on economic fundamentals, but also on sector specifics and this particularly holds true for the oil and gas industry. Therefore, we have added sector specific to the standard economic explanations of mergers and acquisitions by accounting for institutions, resources, and politics. Indeed, our outputs show that industry-specific factors seem much more important in motivating M&A in the oil and gas industry than the familiar and researched economic conditions. In particular, the pattern of cross-border M&A is almost unrelated to opportunities offered by the resource base in different countries while political, institutional, and legal constraints shape the directions of cross-border M&A. The research covers the recent trends in the oil and gas M&A transactions, strengthens the understanding of various dynamics and sheds light on the potential future directions of the M&A market in the oil and gas industry.

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The Effects of Cross-border and Cross-industry Mergers and Acquisitions on Home-region and Global Multinational Enterprises

British Journal of Management ◽

10.1111/1467-8551.12023 ◽

2013 ◽

Vol 25 ◽

pp. S116-S132 ◽

Cited By ~ 21

Author(s):

Gerhard Kling ◽

Abby Ghobadian ◽

Michael A. Hitt ◽

Utz Weitzel ◽

Nicholas O'Regan

Keyword(s):

Mergers And Acquisitions ◽

Multinational Enterprises ◽

Cross Border ◽

Home Region

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Relationship between Cross-Border Mergers and Acquisitions and International Trade: The Case of Russian Pharmaceutical Industry

Экономическая наука современной России ◽

10.33293/1609-1442-2020-1(88)-81-94 ◽

2020 ◽

pp. 81-94

Author(s):

Alexandra V. Chugunova ◽

Olga A. Klochko

Keyword(s):

International Trade ◽

Mergers And Acquisitions ◽

Volume Growth ◽

Pharmaceutical Products ◽

Pharmaceutical Companies ◽

Cross Border ◽

Export Volume ◽

Relationship Of ◽

Geographical Diversification ◽

The Relationship

This research studies the relationship of cross-border mergers and acquisitions to international trade through the lens of Russian pharmaceutical market. To this aim, the study analyses the woks of foreign economists dedicated to evaluating the link between foreign direct investment and international trade, and the influence of mergers and acquisitions on countries’ export and import flows. The research also presents a correlation analysis between the volume of Russian pharmaceutical exports and imports and cross-border deals performed by foreign pharmaceutical companies in Russia. We characterize these deals and conduct a comparative analysis of the regional structure of Russian pharmaceutical exports and imports as well as of the countries of origin of buyers in cross-border mergers and acquisitions. The results of the analysis indicate a positive relationship between cross-border mergers and acquisitions and Russian pharmaceutical exports, which is reflected in the export volume growth and its geographical diversification. However, it is outlined that particular problems of the industry hinder the amelioration of Russian positions in international exports. Similarly, the relationship between cross-border deals and Russian imports is positive: the major pharmaceutical products supply flow occurs from the countries of origin of buyers in cross-border mergers and acquisitions conducted in the Russian pharmaceutical sector.

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