EMCC European Monitoring Centre on Change

Managing change in European cross-border Mergers & Acquisitions

The second Company Network Seminar of 2007 will be held in the headquarters of Grupo Santander in Boadilla del Monte (Madrid) on November 29-30.

The second Company Network Seminar of 2007 will be held in the headquarters of Grupo Santander in Boadilla del Monte (Madrid) on November 29-30. This event will set out to analyse the drivers of change that have triggered off new waves of Mergers and Acquisitions across the EU in recent years. Five European companies will present their corporate practices in order to illustrate and outline the complex business processes associated with these operations and discuss their impact on enhancing firm performance and productivity.

The EMCC team wishes to thank Grupo Santander for its kind cooperation and support in hosting the second Company Network Seminar of 2007.

What is the context?

European integration over the last decade has lead to the creation of a vast Internal Market, aimed at improving economic efficiency and competitiveness, whilst also providing more goods and services at better prices for consumers and companies. Furthermore, the introduction of a common currency in many Member States has also boosted economic activity and made the EU a more attractive place for investors.

These developments coupled with the buoyant business climate of recent years have helped increase corporate confidence and resulted in unprecedented waves of cross-border Mergers and Acquisitions (M&As) throughout many sectors of the European economy. Two principal factors appear to be driving these processes; on the one hand, companies aim to enter and/or increase sales in a foreign market by acquiring well known local brands in order to exploit economies of scale and divest production. On the other hand, increased competition often leads to defensive corporate strategies whereby firms aim to eliminate potential competitors by launching an acquisition to regain market power and boost shareholder value.

According to official sources from the European Commission, EU firms have been the second most active bidders in the last 12 months after US companies. Also, the value of deals in Europe has been rising steadily over the last 4 years to reach an all time high since the Dotcom bubble burst. The EU’s progression towards a knowledge based service economy is reflected in the fact that 66% of bids took place in the different services sectors with the manufacturing sector accounting for 28% of all activity. Whilst the bigger Member States show a larger percentage of domestic M&As smaller countries are much more exposed to cross-border operations.

Seminar focus

The event will set out to explore successful company strategies of completed Mergers & Acquisitions. Real life testimony of five different European companies will enable participants to gain a detailed insight into the intricate procedures associated with this business practice. The debates will also seek to clarify the different steps and phases linked to these operations from a practical and managerial point of view. Moreover, the seminar will aim to analyse the impact of M&As on company productivity and performance levels, as well as the associated social and employment costs and the contribution of these transactions to the overall economic competitiveness of the EU.

The focus of the presentations and subsequent debates will address the following issues:

  • The corporate strategy and motivation behind a Merger & Acquisition process
  • Negotiating terms and conditions
  • Financing an M&A
  • The role of intermediary financial institutions and credit rating agencies
  • How to create shareholder value
  • Social provisions and impact on jobs
  • The power of Communication and Public Relations
  • Addressing corporate cultural differences to guarantee the success of an M&A
  • Implementing the strategy (obstacles, challenges, evaluation and monitoring)

Programme

For further details on the format and topics of this seminar, please download the final programme (pdf 206 kb).

What to do if you are interested

If you are interested in participating in this seminar, please contact Catherine Cerf at cce@eurofound.europa.eu or express your interest online by downloading the form and sending a completed copyand sending a completed copy to Catherine Cerf or by fax (+353 1 282 6456).

Please note that the deadline for registering is 26 October 2007. EMCC will reimburse travel costs and pay a daily subsistence allowance for a limited number of participants. Places are fixed at 45 and registrations will be screened upon receipt, with the applicant receiving notification of his/her acceptance shortly afterwards.

Further information on EMCC exchange events

Reports from previous exchange events, including company network seminars, are published on the emcc portal. These provide an insight into company cases and conclusions drawn.

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