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Mergers and Acquisitions in European banking higher productivity or better synergy among business lines?

Rym Ayadi (), Jean-Philippe Boussemart (), Hervé Leleu () and Dhafer Saidane ()

Journal of Productivity Analysis, 2013, vol. 39, issue 2, 165-175

Abstract: This paper aims at assessing the extent to which M&As in European banking sector over the period 1996–2003 result in two simultaneous catching up and convergence processes of consolidating groups. First, do the M&As significantly contribute to the consolidating banks to catch-up with the productivity benchmark? Second, in terms of synergies or complementarities among business lines, is there a convergence process of output mixes among the individual banks of the M&A operations? Our sample is made up of 42 M&A transactions and 587 non-merging banks in Europe. The main conclusion is that M&A operations in the European banking industry appear to be essentially motivated by an objective of improving complementarities among lines of work from each component of M&As rather than increasing productivity at the merged banks. Copyright Springer Science+Business Media, LLC 2013

Keywords: Efficiency; Free Aggregation Hull; Catching-up; Convergence; Mergers & acquisitions; Banking industry; D24; G21; G34; L25 (search for similar items in EconPapers)
Date: 2013
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DOI: 10.1007/s11123-012-0309-8

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