In the context of interconnected businesses and financial markets, we examine the competitive dynamics and the stock price discovery process of international acquisitions, and we measure its effects on the US market. To achieve this, we analyze a sample of large international and US acquisitions, and we compare its effects on the stock price abnormal returns of US-based rivals. This aims to improve our understanding of the information content of international mergers announcement. We observe that international and US target acquisitions generate positive abnormal returns to the US-based rivals, but the effect is statistically significant only for US target acquisitions. We also observe that international deals are related to lower abnormal returns to the US rivals during the run-up period. The abnormal returns to the rivals during the run-up period are positively related to the abnormal returns to the targets. Also, we observe that smaller deal values are associated with higher abnormal returns to the rivals during the run-up period. We do not identify statistical differences to the rival's stock price abnormal returns when targets are publicly listed vs unlisted. We highlight several deal-specific and firm-specific characteristics that are statistically significant to explain the abnormal return to the targets, but that are not significant to explain the abnormal returns to the rivals. These include: the acquirer public status, the proportion of cash in the transaction, the premium paid, the horizontal nature of the deal and the identification of the target as Initial Industry Target. The abnormal returns to the targets are consistent with previous studies. Targets of US and international acquisitions earn significant positive abnormal returns. US targets earn on average significant higher abnormal returns than international targets. Also, we observe that horizontal mergers are associated with higher abnormal returns to the targets than nonhorizontal mergers. Targets identified as Initial Industry Target realize significant lower abnormal returns. Finally, other deal-specific characteristics appear related to the abnormal returns to the targets, including the deal value, the acquirer public status, the proportion of cash in the transaction and the premium paid.

A comprehensive review of U.S. substantive merger law, this book gives you indispensable guidance you can put into practice today.

International mergers and acquisitions play a vital role behind the growth of a company. This book explores the hurdles involved and how to navigate through the review processes set up by national regulatory agencies such as the US Committee on Foreign Investment (CFIUS), the EU Commission, and the Anti-Monopoly Bureau of State Administration of Market Regulation of China (AMB). This book is unique and showcases how to anticipate, develop, and implement successful strategies to support mergers and acquisitions activities, particularly of interest to finance and law students, researchers, and academics.

Document from the year 2017 in the subject Law - Civil / Private, Trade, Anti Trust Law, Business Law, grade: A, , language: English, abstract: The major problem associated with the regulation of transnational mergers, which affect several national markets, is the allocation of jurisdiction. Each country concerned may wish to exert jurisdiction and apply its national competition law to regulate the anti-competitive effects a merger may have in its territory. However, this approach may lead to risks of inconsistent decisions regarding the legality of mergers. Indeed, the national competition laws applied by the regulating authorities may diverge in several aspects, which raise the likelihood of inconsistency. The authors advocates the creation of an international merger control framework (IMCF) for the regulation of transnational mergers. This framework will rest on an informal and a formal pillar. The former includes non-legally binding competition principles. Consistency of these principles with the concepts of legitimacy and efficiency, as well as the presence of peer reviews and assistance programmes, should lower the risk of non-implementation. The formal pillar includes bilateral cooperation agreements which apply to merger affecting the countries which have concluded the agreements. As essential pre-condition for the application of bilateral agreements, the level of cooperation achieved by such agreements should be at least equal to that ensured by the informal pillar. The last part of the study addresses and examines the long and complex processes in merger and acquisition (M&A) transactions. M&A arbitration faces certain difficulties during the transaction. Such difficulties the author seeks to underline. Two main problems of arbitration in M&A transactions, particullarly, have been covered. Firstly, the problem of consent in consolidation of parallel proceedings during M&A transactions, and, secondly parties' consent that validate arbitration agreements/clauses in “assignment” or “succession” after M&A transactions have been completed. The author also tries to clarify the content of consent of parties to a transaction. Finally, a criticism of parallel proceedings is enhanced.