The Innovation Impact
Edited by Bruno Cassiman and Massimo G. Colombo
Leo Sleuwaegen and Giovanni Valentini INTRODUCTION In this chapter we ﬁrst provide a general description of the ﬁve merger waves as well as the trends in world wide Mergers and acquisitions (M&A) since 1985. Subsequently, we focus on the factors driving the ﬁfth M&A wave and recent trends in M&A in the European Union (EU). In this last section, special attention is given to the relationship between technological change and M&A. 2.2 MERGER WAVES It has become common to distinguish ﬁve merger waves in economic history. The waves have been clearly identiﬁed in the USA. In Europe, the evidence on the ﬁrst three waves is less systematic and covers mainly the UK and Germany. Using approximate dates, the waves correspond to the following time periods (see also Figure 2.1): – 1887–1906 Helped by the economic recovery and development of ﬁnancial markets during this period, several great oil, steel, and other trusts were created. The horizontal integration of many smaller ﬁrms into larger groups threatened to monopolize some of these economic sectors. 1918–29 A further consolidation within industries took place during this period. The oligopolies that emerged created concern and gave rise to the design and implementation of an eﬀective anti-trust legislation in the USA. At the same time, a signiﬁcant number of vertical mergers in resource intensive sectors took place, putting the complete production and distribution chain under the control of a single ﬁrm. – 11 12 1800 1600 1400 1200 1000 800...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.