MANAGING CROSS-BORDER M&A: Three approaches to takeovers in Europe

This chapter explores why and how decisions about cross-border mergers and acquisitions (M&A) are made in an European Union (EU) context. It considers the underlying value of cross-border M&A, which choices seem to work better for M&A deals and how they take place, that is, the various enablers, or factors – processes and value systems – affecting implementation of the deals. The chapter also explores the themes by looking at some major literature streams, each suggesting its own approach to the successful management of M&A. It discusses directions for future research into failures and successes of European cross-border M&A in the light of recent trends such as integration and disintegration in the EU, devolution of central powers to regional and national jurisdictions in European states and resilience to global recessions. The chapter looks into why firms pursue cross-border M&A deals in Europe and examines this issue from the institutions perspective, the resources and capabilities perspective and the firm–environment relations perspective.