Giannopoulos, George, Spurgeon, Vita and Elmarzouky, Mahmoud (2025) The impact of mergers and acquisitions on shareholder wealth of acquiring companies in the mining industry. International Journal of Business Governance and Ethics, 19(3/4), pp. 432-456. ISSN (print) 1477-9048
Abstract
This study explores the impact of mergers and acquisitions (M&As) on acquirer shareholders' wealth in the global mining industry. Using an event study approach on a sample of 9,806 M&A deals from 1990 to 2014, we find that mining industry acquirers generally experience positive abnormal returns (AR) around the announcement date. Notably, the M&A wealth effect varies significantly based on specific deal characteristics. Cross-border acquisitions, focus-increasing acquisitions, and acquisitions resulting in full ownership of the target yield higher abnormal returns. Conversely, large deals often result in lower returns. These findings highlight the role of strategic decision-making in M&A transactions within the mining industry, with implications for both industry practitioners and policymakers.
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