The EBF site is dead. If you click through you will be taken to the Internet Archive site to find an archived copy.
Over the last two decades western economies have experienced a wave of M&A activity and a common hunger among many CEOs to increase the size of their corporation. Will the next wave in economic growth be engulfed by a series of demergers? If this were to happen, would it be similar to the de-conglomeration wave in the 1980s that followed the conglomerate mergers of the 1960s? In order to establish whether demergers create value for the shareholder, researchers at the London School of Economics collected data on the performance effects of European demergers over the last 10 years. The results showed that, unlike mergers, demergers on average seem to be beneficial for the shareholder.
Editor’s Note: this is one article in the EBF Debate titled “Should we control the urge to merge?” at
Thomas Kirchmaier
Source: European Business Forum (EBF)
Subject: Finance
