Mergers and Acquisitions: Types, principles, historical information and empirical evidence from the Greek banking sector

This paper describes the types and main principles of mergers and acquisitions, a strategic policy adopted by many firms worldwide in their efforts to expand their business, enter new markets, sectors and countries as well as to mitigate the competition they face from rivals. In addition to the description of the various types of mergers and acquisitions, the motivations behind such actions are broken down along with the obstacles and counterincentives that can lead to the failure of such deals and the significant issue of financing a merger or an acquisition. A brief analysis of the recent trends in international mergers and acquisitions is subsequently provided. The paper goes on to focus on the recent wave of acquisitions in the Greek banking sector by highlighting the case of Alpha Bank's takeover of Emporiki Bank. The analysis performed provides some evidence of a positive financial effect for Alpha Bank's shareholders as a result of the announcement of that takeover.