Foreign acquisitions of Italian medium-sized companies from MNEs

  • Riccardo Resciniti
  • Gabriele Barbaresco
  • Giulio Maggiore
  • Michela Matarazzo
Keywords: cross-border acquisitions, mid-sized target companies, Made in Italy

Abstract

 

Purpose of the paper: Italy is one of the most attractive European destinations for FDI inflows worldwide. It has witnessed a rapid increase in mergers and acquisitions, to the point of overcoming the EU 15 mean in the years 2008-2013 (with the exception of 2012) (UNCTAD, 2014). The question of whether governments should foster foreign take-overs is crucial, since the Italian economy has been traditionally founded on “national champions”.

The purpose of the paper is to present a broader research project that aims at investigating (at firms’ level) the performance differences of all the mid-sized foreign-controlled firms, compared with the non acquired firms in the manufacturing industry.

Methodology: the paper analyzes firms acquired in the period between 1999 and 2009 by using data from Mediobanca Research Department.

Findings: first results in terms of composition of the acquired mid-sized companies are shown.

Practical implications: the paper defines the different perspectives of analysis describing the managerial effects of foreign acquisitions on the acquired firms, the MNE acquirers, and the target country  with respect to the industrial development, the employment and the supply chains of the territory.

Originality of the paper: the study uses Mediobanca Research Department database for the first time in order to investigate the topic of cross border acquisitions.

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Published
2015-12-30