Abstract
Progress of cross-border mergers and acquisitions (M&A) in Asian region demonstrates an upstream pattern although the economy in Europe is unhealthy. In fact, many cross-border deals in Europe are dominated by Asian and US acquirers. In 2010, Asia Pacific countries had completed over 8,300 M&A deals that involved an Asian company reported by Dealogic. Countries such as China, South Korea, Malaysia, Singapore and Thailand are among Asian countries that are active in cross-border M&A. However, M&A trends in Malaysia and Indonesia have not received due attention of the researchers. Present study attempts to explore this phenomenon with the specific idea of identifying the background of Malaysian and Indonesian industries that involved in cross-border M&A. Present paper also reveals the integration trends involved when engaging in cross-border M&A. An opinion survey was conducted of the firms involved in M&A deals; the companies were identified from the Thomson One Banker main database which covers cross border M&A cases completed in Malaysian and Indonesia. Results show that engineering, software and telecommunication industries are among the leading industries engaged in cross-border M&A. Results also reflect that in terms of nationality of the acquired firms, Malaysia, Indonesia, Thailand and Singapore are among favourites to Malaysian and Indonesian acquirers. The study highlights higher success compared to failures in cross-border M&A in the countries under reference.
Highlights
Mergers and acquisitions (M&A) can be defined separately; mergers is a combination of assets of two previously separate firms into a single new legal entity whereas acquisition is the control of assets transferred from one company to another (Ghauri and Buckley 2003).according to United Nations (2000), the number of mergers are relatively low for practical purposes M&A should reflect ‘acquisitions’
A multiple rather than a single-industry survey was conducted. The rational for this approach was that, there have been fewer cases of cross-border M&As in Malaysia and Indonesia compared to developed countries such as the US and European countries
Table-2 shows that engineering, software and telecommunication industries are among the leading industries engaged in cross-border M&A
Summary
Mergers and acquisitions (M&A) can be defined separately; mergers is a combination of assets of two previously separate firms into a single new legal entity whereas acquisition is the control of assets transferred from one company to another (Ghauri and Buckley 2003).according to United Nations (2000), the number of mergers are relatively low for practical purposes M&A should reflect ‘acquisitions’. M&A can be categorised into three main groups: horizontal, vertical and conglomerate and can be classified further into domestic M&A and cross-border M&As. For the purpose of this study on Cross-border M&A an attempt is made to highlight several evidences about the amalgamation of Malaysian and Indonesian and the rest of other nations. In addition this study will look at the patterns of amalgamation to identify the form of M&A that Malaysian and Indonesian firms have engaged. The paper is presented in three main sections: in the first section it discusses previous studies in crossborder M&A. The findings concludes the amalgamation patterns among Malaysian firms that employ cross-border M&A are presented
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