Author(s): Rym Ayadi
In: Financial Markets, CEPS Reports in Finance and Banking (closed in 2009)
Date: 12 September 2007
Type: Printed book|
Price: € 40.00
This book examines the performance of mergers and acquisitions in the banking industry in Europe and introduces a new approach for assessing the phenomenon by considering the various strategies underlying consolidation activity – namely, the initial activities of the banks involved and the geographical dimension of their transactions. The results show that the economic and financial performance of a banking M&A depends on its underlying strategy, which is defined on the basis of the bank’s initial activities and its geographical reach. The optimal combination of these two factors – defining the optimal underlying strategy – could be a critical factor for the success or failure of an M&A.