The Impact of the Single European Market on Cross Border Mergers in the UK Manufacturing Industry

Cross‐border mergers and acquisitions (M&As) are one way in which EC companies are meeting the challenge posed by the competitive threats of the Single European Market. Research in mergers has tended to look at the theoretical and statistical aspects of merger strategies. There is a lack of empirical data on the actual reasons that the companies have for their actions. The present study reports the results of the first empirical investigation into how UK manufacturing firms view their merger strategies. A sample representing 70 per cent (34 companies) of all M&A activity in UK manufacturing companies in 1991 responded to a questionnaire on their respective M&As. The data presented include their reasons and expectations, perceived barriers to Continental M&As, the alternative uses of capital considered and differences between small and large companies (< >£500 million T/O). Also presents M&A preparation times,the significant correlation between merger size and time may be useful in planning future M&As. Finally, discusses the comparison of these companies′ strategies with merger theory, e.g. as regarding synergies,whether these strategies are appropriate long‐term strategies compared with alternatives or are a response to short‐term pressures for growth.