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Abstract
This study investigates the patterns of corporate mergers and acquisitions (M&As) involving firms located in the EU25 as well as in the four EFTA countries between 1998 and 2003. Against the background of a reflection on the concept of the firm in economic geography, it uncovers the cross-border balance of M&As across European states and identifies the factors that may explain the levels and patterns of corporate takeovers across Europe. The results indicate that the traditional motives of access to new and core markets, the effects of geographical proximity, and the internalisation of localised capabilities (proxied by a skilled and innovative labour pool) represent the key drivers of European M&As, while institutional factors, such as European integration or language barriers, appear to be less influential.
Acknowledgements
The authors would like to thank Phil Cooke, Sasha Cole, Natalie Galluccio, Hans-Dieter Haas, Peter Maskell, Arnold Picot, the anonymous referees and the participants at conference sessions in Denver, Rauischholzhausen, London, Granada, Pescara, and Madrid for their comments to earlier drafts of this article. We are grateful to Gawn Rowan Hamilton and Peter Germonpre who gave access to the Mergermarket database and to Julius Arnegger, Philipp Rodrian, and Manuel Woltering for their research assistance. The generous provision of research facilities at the Department of Industrial Economics and Strategy, Copenhagen Business School as well as the financial support of Dfg-grant HA 795/8-1 and of the ProCiudad-CM grant are also acknowledged.
