This study investigates the effect of national champion strategies on the length of the pre-M&A process in Europe. The policy strategy of creating so-called “national champions,” that is, promoting national rather than international mergers, is often the focus of European policy debate. If European governments support national champion M&A activities, we would expect that national champion M&A deals have an accelerated pre-M&A process at the European Commission (EU) relative to comparable European M&A deals. To empirically test this proposition, we compare national champion M&A under scrutiny by the EU to similar deals in terms of industry and firm characteristics in the period 1997–2010. In contrast to our expectation, national champion M&As face a longer pre-M&A process than other comparable European M&As. However, evidence indicates that national champion M&As are almost always completed successfully while comparable European M&As are often derailed in process.
Booij, M. and Rao Sahib, P. (2012), "Slow but Certain: The Pre-M&A Process of European National Champion Deals", Finkelstein, S. and Cooper, C. (Ed.) Advances in Mergers and Acquisitions (Advances in Mergers & Acquisitions, Vol. 11), Emerald Group Publishing Limited, Bingley, pp. 55-68. https://doi.org/10.1108/S1479-361X(2012)0000011006Download as .RIS
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