Mergers between European Energy Firms: National Champions and Markets

Abstract

European Union electricity and gas directives, aimed at the creation of an internal energy market, have triggered a wave of mergers and acquisitions. National and European authorities, however, have taken a somewhat inco-herent stance vis-a-vis such processes, at times promoting the transactions and at others opposing them. This chapter reviews a number of recent takeover bids (both successful and unsuccessful), and examines the winners and the losers in this process through an analysis of stock market (event study) and other data. Although the perspective adopted is European, the main examples are drawn from one specific European country — Spain — reflecting the author’s own research interests. Such a focus is arguably a pertinent research strategy today, given that the market for corporate control at the European level is characterized by an ongoing wave of takeovers. This means some time will need to pass before researchers are able to undertake a full assessment. Hence, any conclusions proffered at this stage can only be provisional, and point to possible lines of future study.