European market integration through technology-driven M&As
Abstract:Merger and Acquisitions (M&As) have been an important tool for reorganizing the European market since the establishment of European Economic and Monetary Union. This article suggests that European integration helped and encouraged European firms to source technology across national borders in Europe, establishing European innovative firms. The figures confirm that, once barriers impeding the free movement of capital, goods and labour had fallen, European firms used M&As intensively to enter foreign European markets. Enhancing technology competencies is found to be one of the main motives for cross-border acquisitions in the 1990s but is not a factor in domestic acquisitions over the same period.
Document Type: Research Article
Affiliations: 1: Economics Department,Deutsche Bundesbank, Wilhelm-Epstein-Strasse 1460431 Frankfurt am Main, Germany 2: Department of Organization and StrategyMaastricht University, Tongersestraat 536211 LM Maastricht, The Netherlands
Publication date: 2011-07-01