The value creation of mergers and acquisitions in mature and emerging markets : a study of French multinationals
Résumé
Foreign direct investments in emerging markets have considerably increased in the recent period. These investments often take the form of mergers and acquisitions (M&As) signed with local partners. French companies are particularly active in forming M&As to develop their growth strategies. This chapter examines the value creation of M&As established by French companies. The authors compare the characteristics and value creation of M&As in both mature and emerging markets. The empirical study is based on a sample of 395 M&As announced between 2010 and 2012 and formed by companies of the French SBF 120 index in 55 countries. The statistical analysis shows how financial markets react before and after the announcement of M&As. The obtained findings highlight interesting differences between mature and emerging countries: the reaction of financial markets before the announcement is negative for M&As in emerging markets, but moderately positive for those in mature markets; their reaction after the announcement is moderately positive for M&As in emerging markets and clearly positive for those in mature economies.