scholarly journals Cross-Border Mergers and Acquisitions Factors in Joining the European Union Countries

2017 ◽  
Author(s):  
Daiva Burksaitiene ◽  
Kristina Garskaite-Milvydiene
Keyword(s):  
Mergers And Acquisitions ◽  
Multinational Enterprises ◽  
The European Union ◽  
Sustainable Business ◽  
Business World ◽  
Strategic Objectives ◽  
Market Activity ◽  
Ownership Structures ◽  
Cross Border ◽  
Economic And Financial Crisis

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.

scholarly journals Cross-Border Mergers and Acquisitions as a Challenge for Sustainable Business

2019 ◽  
Vol 11 (11) ◽  
pp. 3130 ◽  
Author(s):  
Jaroslava Hečková ◽  
Róbert Štefko ◽  
Miroslav Frankovský ◽  
Zuzana Birknerová ◽  
Alexandra Chapčáková ◽  
...  
Keyword(s):  
Mergers And Acquisitions ◽  
Merger And Acquisition ◽  
Sustainable Business ◽  
Cross Border ◽  
European Area ◽  
The Future ◽  
Basic Parameters ◽  
Research Gap ◽  
The Subject ◽  
Variance Explained

When considering the challenges for sustainable business, companies implementing cross-border reallocation of capital by means of mergers and acquisitions should take into account the context and evaluation of attributes of their future implementation. The main aim of the paper is, therefore, to identify and specify the key attributes of sustainable cross-border mergers or acquisitions (M&As) influencing the considerations about their future implementation. On the basis of the views of managers from 120 companies (international corporations selected from the Zephyr database) located in 45 countries within the European area that had previously been the subject of a cross-border merger or acquisition, significant attributes were extracted in connection with their experience from their implementation. These attributes are taken into account when considering the implementation of a cross-border merger or acquisition in the future. A factor analysis of the data obtained allowed the extraction of three key attributes of implementation of a potential merger and acquisition process as an important tool of business sustainability—aims, concerns, and reasons. This paper further presents the basic parameters of the Attributes of Future Mergers and Acquisitions (AFM&A) methodology: eigenvalues, Cronbach’s alpha values, the percentage of the variance explained, inter-correlations of the extracted factors, and the results of an analysis of differences in the assessment of the extracted factors by managers. At the same time, no statistically significant differences were found in the assessment of the extracted merger and acquisition assessment factors. The study fills in the research gap in the area by identifying and specifying the attributes of considering the future implementation of M&A management in terms of the broader concept of this issue.

scholarly journals Cross-Border Mergers and Acquisitions in Light of the European Legal Framework

2021 ◽  
Vol 18 (1-2) ◽  
pp. 1-12
Author(s):  
Leen Bakerjian
Keyword(s):  
European Union ◽  
Mergers And Acquisitions ◽  
Global Economy ◽  
Legal Framework ◽  
The European Union ◽  
Freedom Of Establishment ◽  
Cross Border ◽  
European Court ◽  
Fundamental Freedoms ◽  
The Cross

This paper will discuss the role that Mergers and Acquisitions play in the global economy. It will deliberate on the challenges, benefits and issues of the implementation of these transactions in terms of legality, society and culture. It also contains an empirical enquiry that investigates the application of Mergers and Acquisitions in the presence of different social and cultural working environments. It also demonstrates attempts of entering into such transactions with incorrect intentions such as domination and the negative outcomes of such approach. Throughout this work, I will investigate the legal instruments governing these types of transactions in different areas of the world, specifically the European Union. It will touch on the legal instruments governing Mergers and Acquisitions in the European Union and will challenge the applicability of the fundamental freedoms of the European Union in light of the cross-border Mergers and Acquisitions directives. The paper will challenge the European Court of Justice’s approach to the Freedom of Establishment and the application of cross-border M&As. Finally, a clear demonstrateion of the fallbacks of the provisions of the Cross-Border Mergers Directives is provided as well as challenging the European legislature’s choices in drafting said directives. Unusual discrepancies between the directives and the fundamental freedoms of the European Union are shown, however these two which must always be in line with one another.

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

2016 ◽  
Vol 12 (3) ◽  
pp. 425-448 ◽  
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.

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

2013 ◽  
Vol 25 ◽  
pp. S116-S132 ◽  
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

scholarly journals EU Freedom Of Establishment And The Theories Of Incorporation In The Context Of Free Movement Of MNEs

2020 ◽  
Vol 02 (12) ◽  
pp. 303-312
Author(s):  
Yulduz Akhtamova ◽  
Keyword(s):  
European Union ◽  
Multinational Enterprises ◽  
The European Union ◽  
Freedom Of Establishment ◽  
Cross Border ◽  
Free Mobility ◽  
Registered Office ◽  
Real Seat ◽  
Legal Forms ◽  
The Right

The creation of a single market with no internal borders where free mobility is guaranteed is one of the main goals of the European Union. Accordingly, along with certain fundamental freedoms, Treaty on the Functioning of the European Union (TFEU) provides the right of establishment for nationals as well as companies in a territory of another Member State. Accordingly, a decentralized nature of multinational enterprises (MNEs) involves various cross-border operations. The aim of this paper is to explore to what extent these transnational objectives of MNEs can be achieved under the freedom of establishment principle of EU law and incorporation theories of Member States. Firstly, it analyzes different scenarios of company mobility such as transfer of registered office or real seat and transnational mergers. Secondly, it examines the freedom of companies to choose legal forms of their cross-border establishment. Finally, it evaluates the most recent judgment in Polbud case in the light of decisions made in previous cases.

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