Mergers and Acquisitions (M&A) of European utility sectors subsequent to
privatization and deregulation triggered widespread concern due to the crucial
role played by utility sectors in a country
’
s economic and social development.
From the study of a sample of 156 cases of M&A within utility sectors in Europe
between 1990 and 2006, this study provides evidence on the performance of
utility sectors following M&A. On one hand the
fi
ndings suggest that lower levels
of losses are accrued to the shareholders in the acquiring companies. On the other
hand the fact that acquirer shareholders in the short run and the shareholders in the
combined post-acquisition companies suffered losses in the long run triggers a
negative signal for the investors in utilities