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Industry Dynamics In The German Merger And Acquisitions Market

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  • ANDRÉS RODRÍGUEZ‐POSE
  • HANS‐MARTIN ZADEMACH

Abstract

The recent wave of mergers and acquisitions (M&As) is not only profoundly altering the structure of businesses, but has also triggered a thorough reshuffling in the location of economic decision‐making. This paper explores these changes in Germany over the last decade, with particular attention being paid to industry‐specific transformations. In order to identify the logic behind changes in the location of economic decision‐making, four factors are analysed across ten different industrial sectors. These determinants include the presence of economies of proximity and agglomeration, the degree of metropolitan interconnectivity (or ‘archipelago economies’), the concentration of economic decision‐making in large urban metropolitan areas, and the role played by geographical distance in shaping M&As. The results indicate that different industries display significantly different spatial merging behaviours, with economies of proximity, concentration and agglomeration playing a capital, but different role in determining the dynamics of M&As across sectors in Germany. There is also – with the exception of the media industry, as well as information and communication technologies – little sign of geography losing importance in economic transactions.

Suggested Citation

  • Andrés Rodríguez‐Pose & Hans‐Martin Zademach, 2006. "Industry Dynamics In The German Merger And Acquisitions Market," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 97(3), pages 296-313, July.
    • Handle: RePEc:bla:tvecsg:v:97:y:2006:i:3:p:296-313
    DOI: 10.1111/j.1467-9663.2006.00521.x
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    References listed on IDEAS

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    1. Davies, Stephen & Lyons, Bruce, 1996. "Industrial Organization in the European Union: Structure, Strategy, and the Competitive Mechanism," OUP Catalogue, Oxford University Press, number 9780198289739.
    2. Diane Coyle, 1999. "The Weightless World: Strategies for Managing the Digital Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262531666, December.
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    Cited by:

    1. Nils Ellwanger & Ron Boschma, 2013. "Who acquires whom? The role of geographical proximity and industrial relatedness in Dutch domestic M&As between 2002 and 2008," Papers in Evolutionary Economic Geography (PEEG) 1319, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2013.
    2. Stefano Elia & Lucia Piscitello & Sergio Mariotti, 2013. "Industrial Districts, Core Cities And Ownership Strategy Of Multinational Firms Investing In Italy," ERSA conference papers ersa13p27, European Regional Science Association.
    3. Jiawei Wu & Yehua Dennis Wei & Wen Chen, 2020. "Spatial proximity, localized assets, and the changing geography of domestic mergers and acquisitions in transitional China," Growth and Change, Wiley Blackwell, vol. 51(3), pages 954-976, September.

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