Large mergers and acquisitions of European brewing groups - Event study evidence on value creation

Acquisitions have been the growing trend in recent years, giving brewers the opportunity to enhance their degree of internationalization and market share remarkably through diverse one-off deals. Larger brewers are faced with low prospects for volume growth in developed markets leading them to seek growth either via acquisition of other brewers or by aggressive participation in developing markets or both. This study employs event study analysis to examine 31 mergers and acquisitions among leading European brewing groups. Differences regarding the brewers' corporate success can be determined within the European peer group. The results are discussed by additionally comparing the performance of companies that experienced M&As and companies that did not. Managerial implications as well as future research propositions conclude this article. (c) 2007 Wiley Periodicals, Inc.