Merger and Acquisition Activity During the Fifth Wave: USA vs. EU

Abstract

The paper proposes a retrospective analysis of merger and acquisition activity carried out during the fifth wave of transactions, a wave that remained deeply entrenched in the history of corporate takeovers. To provide a clear picture of the topic treated, the author analyzed comparatively the merger and acquisition activity undertaken during the fifth wave in the USA and the EU. The research conducted in this paper is based on a systematic, logical, and comparative analysis of scientific literature and statistical data regarding the fifth wave of mergers and acquisitions. The author used as a research method the qualitative approach in order to analyze the factors generating and the particularities of the fifth merger and acquisition wave. This was actually the first wave that was truly international; it reflected the evolution of the economic globalization process and had particular importance in the analysis of the development of the merger and acquisition activity globally. The author found that during the 1990s, Europe achieved a number of transactions comparable to those achieved in the USA and that the share of international operations in the total mergers and acquisitions recorded in the USA or the European Union increased. Also, cross-border merger and acquisition activity gained new values, and the European Union has strengthened its position on the international market of corporate takeovers. The European Union has become a serious competitor, the role of the EU companies being very important both from the perspective of the purchasers and of the sellers. However, the large volume of mergers and acquisitions is noted in the USA, a country that basically sets the tone in terms of adopting this strategy of company growth and development.