This study examines the relationship between mergers and firm-level financial measures using a sample of 4,482 acquisition targets in the European Union from 2007 to 2021. Findings suggest that horizontal mergers lack statistically significant results, whereas vertical mergers entail changes in markups (-0.7%), market share (+2.5%), Return on Fixed Assets (ROFA) (+2.3%), and capital intensity (-7.2%). The result for vertical mergers increases over time, and is larger when the number of pre-existing subsidiaries is greater. Our results suggest the elimination of double profit margins as a potential explanation.
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Bellucci et al. (2026) studied this question.
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