Abstract
This chapter examines the behavior of mergers and acquisitions (M&A) in frontier markets. There has been some M&A activity in frontier markets since 1999, with a rising trend after 2006. However, acquirers based in frontier markets fail to create superior abnormal returns for their shareholders compared to acquirers from elsewhere in the world, as they seem to lack the expertise to do so. Overpayment is unlikely to be the explanation since target firms in frontier markets receive the lowest premiums. Acquirers from developed countries achieve their highest abnormal returns when they bid for target firms in frontier markets.
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