Europe's M&As more successful than US
PwC says deals closed in Europe are less likely to destroy company value than those made in the US
PricewaterhouseCoopers has found that that mergers and acquistions in Europe
and the UK have been far more successful than takeovers in the United States.
Research by the Big Four firm showed that although most US deals tended to
destroy shareholder value, European dealmakers had been far more successful in
creating value.
PwC analysed the deals between all listed European companies from 1995 to
2004 using data compiled by Dealogic. The firm found that more than half of the
deals generated positive returns for acquiring companies relative to the wider
market.
Equivalent US research over a similar period showed that most deals provided
negative returns.