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Characteristics
of Home Countries of
Foreign Acquirers in Upper-Middle-Income Economies: An Explorative
Study of Mexico --
Christopher
B Kummer
In
recent years cross-border Mergers & Acquisitions (M&A)
have increased in importance. The paper examines the characteristics
of the home countries of foreign acquirers in upper-middle-income
economies like Mexico. The study is based on 712 cross-border
M&A from 34 countries into Mexico that happened from
1995 to 2005. For the analysis of factors, a multiple regression
analysis has been used. The results show that the only statistically
significant factor is Gross Domestic Product (GDP), while
GDP per capita, GDP growth, inflation, economic freedom,
and geographical and cultural distances are statistically
insignificant. The analyses explain about 77% of the number
and 67% of the value of cross-border M&A into Mexico.
©
2007. The Icfai University Press. All Rights Reserved.
The
Arcor/Bagley Merger and the Argentine Biscuit Market: Price
Increases vs. Cost Reductions -- Germán
Coloma
This
paper analyzes the behavior of the Argentine biscuit market
during 2003-06 to find out whether any important merger
occurred in October 2004 (the Arcor/Bagley merger) had any
discernible market power or cost reduction effects. This
paper presents an econometric demand-and-supply model in
which it treats the biscuits supplied by the main producers
as different products. The results show that there is an
appreciable cost reduction that more than counterbalances
the price increases induced by the merger. This implies
that total consumers' surplus grew as a consequence of the
merger.
©
2007. The Icfai University Press. All Rights Reserved.
Horizontal
Merger and Vertical Differentiation --
Cristina
Barbot
The
effects of a merger have usually been examined in the context
of homogeneous goods and are unambiguously established.
This paper deals with merger in vertically differentiated
industries, presenting two models, one with two firms, and
the other with three firms. The results depend on the number
of previous firms in the industry, and on the qualities
produced by the merging firms. However, some results differ
from the standard ones, mainly due to the nature of competition
in a vertical differentiation set.
©
2007 The Icfai University Press. All Rights Reserved.
Mergers
& Acquisitions in Banking: The Case of NBG and Stopanska
Banka -- Marjan
Petreski
This
paper aims to acknowledge the performance effects of bank
mergers and acquisitions. A broad literature is reviewed
as to banks' cost and profit efficiency, market power, stock
price, and welfare effects behind the merger/acquisition
event. Furthermore, the acquisition of Stopanska Banka AD
Skopje by National Bank of Greece is deeply examined with
regard to the post-acquisition performance of Stopanska
Banka on top of the benefits for NBG of this endeavor.
©
2007 The Icfai University Press. All Rights Reserved.
Competition
Law and the Regulation of Cross Border Mergers and Acquisitions:
A Story of Conflict, Cooperation and Convergence --
Ariel
Ezrachi
Cross-border
merger control has traditionally been a difficult subject
for multilateral co-operation, let alone harmonization.
The multitude of interests at stake and the heterogeneous
multilateral environment mean that attempts to reduce inefficiencies
stemming out of multi-jurisdictional merger review face
resistance at various levels. This paper examines the friction
generated by the misfit between national merger control
and cross-border economic activity. It considers the domestic
nature of merger control and the way it affects the feasibility
and effectiveness of cooperation in merger regulation. It
explores the contribution and limits of binding and voluntary
multilateral initiatives in advancing convergence in this
area. It further considers the role of bilateral cooperation
in a multilateral setting. The discussion echoes the challenges
for undertakings and agencies operating in the current sub-optimal
environment of multiple enforcers. It identifies voluntary
multilateral frameworks as the most promising vehicle for
advancing future convergence, and provides insight as to
the catalysts to, and limits of, these voluntary frameworks.
©
2007. The Icfai University Press. All Rights Reserved.
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