THE CONSOLIDATION OF THE GLOBAL BREWING INDUSTRY AND WEALTH EFFECTS FROM MERGERS AND ACQUISITIONS

Ramit Mehta and Dirk Schiereck

The International Journal of Business and Finance Research, 2012, vol. 6, issue 3, 67-87

Abstract: The brewing industry has recently experienced increased merger activity. This paper analyzes the shortterm wealth effects of horizontal mergers and acquisitions on acquirers in the brewing industry. Based on a sample of 69 takeover announcements between 1998 and 2010, significant positive announcement returns were identified. In addition, the study finds significant positive returns for domestic transactions as well as cross-border deals involving targets in emerging markets. Other identified drivers of shortterm success include transaction size, acquirer size and the target’s public status. Furthermore, significant negative rival effects are identified across leading brewing groups, when missing a potential M&A opportunity.

Keywords: Mergers and Acquisitions; Brewing Industry; Announcement Returns; Acquirers; Industry Rivals; Event Study (search for similar items in EconPapers)
JEL-codes: G14 G34 Q14 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v6n3-2012/IJBFR-V6N3-2012-6.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibf:ijbfre:v:6:y:2012:i:3:p:67-87

Access Statistics for this article

The International Journal of Business and Finance Research is currently edited by Terrance Jalbert

More articles in The International Journal of Business and Finance Research from The Institute for Business and Finance Research
Bibliographic data for series maintained by Mercedes Jalbert ( this e-mail address is bad, please contact ).