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

2013 
This paper aims at assessing the extent to which M&As in European banking sector over the 1996-2003 period 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 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 concerns 42 M&A transactions and 587 non-merging banks in Europe. As a main conclusion, M&A operations in the European banking industry appeared to be essentially motivated by an objective of improving complementarities among lines of work from each component of M&As rather than to increase productivity at the merged bank level.
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