The impact of mergers and acquisitions on shareholder wealth of acquiring companies in the mining industry

George Giannopoulos, Vita Spurgeon and Mahmoud Elmarzouky

International Journal of Business Governance and Ethics, 2025, vol. 19, issue 3/4, 432-456

Abstract: This study explores the impact of mergers and acquisitions (M&As) on acquirer shareholders' wealth in the global mining industry. Using an event study approach on a sample of 9,806 M&A deals from 1990 to 2014, we find that mining industry acquirers generally experience positive abnormal returns (AR) around the announcement date. Notably, the M&A wealth effect varies significantly based on specific deal characteristics. Cross-border acquisitions, focus-increasing acquisitions, and acquisitions resulting in full ownership of the target yield higher abnormal returns. Conversely, large deals often result in lower returns. These findings highlight the role of strategic decision-making in M&A transactions within the mining industry, with implications for both industry practitioners and policymakers.

Keywords: shareholders' wealth; mining industry; mergers and acquisitions; M&A. (search for similar items in EconPapers)
Date: 2025
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