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Everybody merges with somebody--The wave of M&As in the energy industry and the EU merger policy

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  • Verde, Stefano

Abstract

Almost all the main European energy companies have recently shown an unprecedented activism on financial markets and the wave of M&As seems far from being over. A sound understanding of the wave can provide hints on the future developments of the market and the effects on merger policy. These operations are explained by several reasons, ranging from the pan-European players' strategy to the creation of national champions, from the objective to merge gas and electricity businesses (convergence mergers) to the aim of re-building a vertical dimension of the industry after liberalization. In face of such a broad range of motivations, merger policy has to be applied consistently to each case and case-law is developing to better address energy-specific issues. Still, the characteristics of the energy industry may allow for more economic insight and a longer-term perspective in merger cases, in order to guarantee that energy and merger policy are leading to the same objectives, through different tools.

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  • Verde, Stefano, 2008. "Everybody merges with somebody--The wave of M&As in the energy industry and the EU merger policy," Energy Policy, Elsevier, vol. 36(3), pages 1125-1133, March.
    • Handle: RePEc:eee:enepol:v:36:y:2008:i:3:p:1125-1133
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    3. Bryant, Gareth, 2016. "Creating a level playing field? The concentration and centralisation of emissions in the European Union Emissions Trading System," Energy Policy, Elsevier, vol. 99(C), pages 308-318.
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    5. Veith, Stefan & Werner, Jörg R. & Zimmermann, Jochen, 2009. "Capital market response to emission rights returns: Evidence from the European power sector," Energy Economics, Elsevier, vol. 31(4), pages 605-613, July.
    6. 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.
    7. Ohsung Kwon & Sangmin Lim & Duk Hee Lee, 2018. "Acquiring startups in the energy sector: a study of firm value and environmental policy," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1376-1384, December.
    8. Ralph Sonenshine, 2020. "Merger waves: are buyers following the herd or responding to structural queues?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 287-308, June.
    9. ten Brug, Hans & Rao Sahib, Padma, 2018. "Abandoned deals: the merger and acquisition process in the electricity and gas industry," Energy Policy, Elsevier, vol. 123(C), pages 230-239.
    10. Zhang, Hengshuo & Li, Shaoping & Cui, Liying & Li, Liping, 2023. "Energy industry advancedization of dynamic evolution and resource-environment decoupling effect: Evidence from China's value chain upgrading," Energy, Elsevier, vol. 283(C).
    11. Kishimoto, Jo & Goto, Mika & Inoue, Kotaro, 2017. "Do acquisitions by electric utility companies create value? Evidence from deregulated markets," Energy Policy, Elsevier, vol. 105(C), pages 212-224.
    12. Capece, Guendalina & Cricelli, Livio & Di Pillo, Francesca & Levialdi, Nathan, 2010. "A cluster analysis study based on profitability and financial indicators in the Italian gas retail market," Energy Policy, Elsevier, vol. 38(7), pages 3394-3402, July.
    13. Yoo, Kyungjin & Lee, Youah & Heo, Eunnyeong, 2013. "Economic effects by merger and acquisition types in the renewable energy sector: An event study approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 694-701.
    14. Zhou, Huizhong, 2012. "Impacts of renewables obligation with recycling of the buy-out fund," Energy Policy, Elsevier, vol. 46(C), pages 284-291.

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