Effect of Food Industry Mergers and Acquisitions on Employment and Wages

Empirical analysis of mergers and acquisitions in eight important food industries suggests that workers in acquired plants realized modest increases in employment and wages relative to other workers. Results also show that mergers and acquisitions reduced the likelihood of plant closures while high relative labor costs encouraged plant shutdowns. These results differ from commonly held views that mergers and acquisitions lead to fewer jobs, wage cuts, and plant shutdowns.Food product industries, mergers and acquisitions, plant closures, Agribusiness, Industrial Organization,

Refocusing on the Success Enabling Factors in Mergers and Acquisitions

Mergers and acquisitions have continued to serve as a primary financing tool undertaken by organizations to achieve corporate objectives. Despite the increased popularity of the mergers and acquisitions phenomenon, determining acceptable metrics for identifying successful mergers and acquisitions continue to pose challenges to investors, financial analysts and other stakeholders involved with mergers and acquisitions. Mergers and acquisitions activities have presented mixed outcomes to different organizations with high failure rates recorded in some and less-significant successes reported in others. Consequently, understanding acceptable metrics for determining a successful merger or acquisition becomes paramount given the challenges experienced by players in that industry. Therefore, a thorough review of the literature is made in this study to identify factors that improve the chances of mergers and acquisitions success. The unique features of successful and unsuccessful mergers and acquisitions are itemized to provide a premise for assessing and evaluating the essential characteristics that make mergers and acquisitions successful. The importance of due diligence, low acquisition purchase premiums, and related business acquisitions in the mergers and acquisitions process were fully explicated. Low acquisition purchase premiums, timing of mergers and acquisitions and related business acquisitions were found to tremendously enhance the success of mergers and acquisitions

EMPIRICAL EVIDENCE ON THE MOTIVES FOR MERGERS AND ACQUISITIONS IN EIGHT FOOD INDUSTRIES

This paper investigates the motives for mergers and acquisitions in eight U.S. food products industries from1977-92. Results show that acquired plants were highly productive before mergers and realized an increase in productivity growth in the post-merger period.Food product industries, mergers and acquisitions, labor productivity., Agribusiness,

The Cross Border Mergers and Acquisitions Wave of the Late 1990s

To establish a benchmark, the cross border mergers and acquisitions wave of the late 1990s is compared to its predecessor in the late 1980s. It is found to be at least five times larger (in real terms), to involve firms from more OECD nations, and to include many more service sector transactions. However, in comparison to the size of national stock market capitalizations, foreign mergers with and acquisitions of domestic firms during this latest wave were small, especially in the Group of Seven leading industrial economies. The effect of cross border mergers and acquisitions on performance in one important service sector, banking, is also examined. Specifically, the relative importance of cross border mergers and acquisitions, domestic mergers and acquisitions, domestic entry and exit, and strategic alliances and joint ventures for interest rate spreads was estimated for 13 industrial nations. The principal findings suggest that the effects of these firm-driven changes in banking market structure differ markedly between EU member states and non-EU industrialized economies. This highlights the importance of differentiating between types of cross border inter-firm agreements and the pitfalls of generalising about the effects of the latest wave of cross border mergers and acquisitions as many of the harshest critics of globalization do.

An analysis of mergers and acquisitions in the Turkish banking sector

We explore various aspects of mergers and acquisitions in the banking industry within a simple model that allows explicit comparison of sector performance before and after the mergers and acquisitions. The industry structure we look at involves a few dominant banks and a competitive fringe, which we take it as the structure most likely to resemble the Turkish banking industry in the aftermath of the ongoing restructuring process. Using a reasonable set of parameters to simulate the model, we do comparative statics exercises regarding the impact of mergers among domestic as well as with foreign banks on equilibrium outcomes.banking; mergers and acquisitions; imperfect competition; Turkey