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Understanding How the Strategic Similarities between Energy Companies Influence the Post-mergers and Acquisitions Performances

Author

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  • G. Capece

    (Department of Enterprise Engineering, University of Rome Tor Vergata, Via del Politecnico 1, Rome, Italy)

  • Di Pillo Francesca

    (Department of Enterprise Engineering, University of Rome Tor Vergata, Via del Politecnico 1, Rome, Italy,)

  • N. Levialdi

    (Department of Enterprise Engineering, University of Rome Tor Vergata, Via del Politecnico 1, Rome, Italy,)

  • G. Perrotta

    (BNL, Piazzale dell Agricoltura, 24, Rome, Italy.)

Abstract

The energy sector has experienced rapid evolution in recent years, following the liberalization of the electricity and natural gas markets, driven by the European Union. These developments have led to a certain level of dynamism in Italy, particularly as concerns mergers and acquisitions (M&As) within the sector. This article examines the influence of strategic similarities between the target and bidder companies on their post-M&A performances. The model used involves a hierarchical regression relating the indexes of similarity between the merging companies, regarding their economic-financial management. The results reveal the influence of the strategic similarities and differences on the post-M&A performances of the companies, showing how the positive or negative effect depends on certain characteristics, such as their structure of share capital, business segments and size. The study evidences the strategic variables that should be considered in choosing the optimal target companies.

Suggested Citation

  • G. Capece & Di Pillo Francesca & N. Levialdi & G. Perrotta, 2017. "Understanding How the Strategic Similarities between Energy Companies Influence the Post-mergers and Acquisitions Performances," International Journal of Energy Economics and Policy, Econjournals, vol. 7(1), pages 78-89.
    • Handle: RePEc:eco:journ2:2017-01-09
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    2. Marialessandra Carro & Claudio Di Mario & Michele Grimaldi & Gianluca Murgia, 2017. "A Public Affairs Platform For The Analysis Of The Liberalization Process In The Italian Electricity Market," International Journal of Energy Economics and Policy, Econjournals, vol. 7(5), pages 123-136.

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    More about this item

    Keywords

    Liberalization of Energy Sectors; Mergers and Acquisitions; Company Performance Evaluation; Strategic Similarity Index; Target Company s Characteristics;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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