Trends and strategic motives of multinational corporations’ mergers and acquisitions
Economic Annals-XXI: Volume 133, Issue 9-10(1), Pages: 11-14
Citation information:
Maksymenko, A. (2013). Trends and strategic motives of multinational corporations’ mergers and acquisitions. Economic Annals-XXI, 9-10(1), 11-14. https://ea21journal.world/index.php/ea-v133-03/
Anna Maksymenko
PhD (Economics),
Associate Professor,
Kyiv National Economic University named after Vadym Hetman
54/1 Peremohy Ave, Kyiv, 03680, Ukraine
an-maksimenko@mail.ru
Trends and strategic motives of multinational corporations’ mergers and acquisitions
Abstract. Purpose. To analyze strategic motives of mergers and acquisitions and the impact of these agreements on the possibility and feasibility of their usage assessment. Methods. To achieve this goal the system of scientific methods aimed at learning of social and economic processes and phenomena are applied, namely: methods of scientific analysis, comparison, and theoretical synthesis. Results. In the article it is clarified the essence of mergers and acquisitions in terms of economic content. The article traces the main trends in mergers and acquisitions at the present stage of development of the world economy. The formation of the prerequisites of the next wave of mergers and acquisitions beginning, which occurs under the influence of corporate assets depreciation is concluded. It is established that the major world markets have the same dynamics and characteristics of corporate mergers and acquisitions, which indicates a high level of the world economy trans-nationalization and the blurring of the international companies division by management type on purely American or European. Conclusion. When choosing between organic and external growth, companies have to analyze the reasons and conditions of entering the M&A market to benefit from the deal. Despite the variety of mechanisms of value creation, all mergers and acquisitions have in common the need to effectively extract the value of newly received assets. It is possible provided that the transaction is within the overall corporate strategy, which allows to fully engaging in the company’s existing assets and structures. At the same time, experience shows that the most effective companies’ strategy is to consider the value of mergers and acquisitions depending on the stage of their life cycle.
Keywords: Merger; Acquisition; Takeover; Consolidation; Trans-Nationalization; Multinational Corporations
JEL Classification: F21; F23
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Received 06.09.2013