Market power consolidation and M&A success: A study of US-American and German utility takeovers

Robert Fraunhoffer (), Andreas Freytag () and Dirk Schiereck ()
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Robert Fraunhoffer: Chair of Corporate Finance, Darmstadt University of Technology, Hochschulstrasse 1, 64289 Darmstadt, Germany
Dirk Schiereck: Chair of Corporate Finance, Darmstadt University of Technology, Darmstadt,Germany

Journal of Economic and Financial Studies (JEFS), 2013, vol. 1, issue 1, 29-45

Abstract: A wave of mergers and acquisitions (M&A) was observed in the North American and European energy utilities market. We analyze the impact of these M&A transactions on market power, studying 139 takeovers of energy utilities by applying event study methodology. Stock price reactions of acquiring and target firms as well as of their competitors are used to detect changes of market power. While we do not find any significant results pointing in this direction for transactions in the US, our findings indicate that the potential to increase market power is indeed an important motive for takeovers within the German energy utilities market.

Keywords: Energy utilities; Mergers and acquisitions; Market power. (search for similar items in EconPapers)
JEL-codes: G14 G34 L16 L94 L95 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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Working Paper: Market power consolidation and M&A success: A study of US-American and German utility takeovers (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:lrc:lareco:v:1:y:2013:i:1:p:29-45

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