A history of self-interest and opportunities? The international woodscrew cartel and GKN’s acquisition of the Swedish woodscrew industry in the late 1920s and early 1930s

Being an outsider in a cartelized context is often preferable, especially if you are well established and possess structural comparative advantages. Such was the position of the Swedish woodscrew manufacturers that provided effective price competition worldwide for a decade. This article analyzes how the international woodscrew cartel, and specifically its leading member, dealt with this during the interwar period. The strategy used was acquisition, and the Swedish screw industry was bought up in just seven years. Besides premium payment, an individual actor, instrumental in a strategy shift, is credited with the outcome. Institutions, which have received limited attention in the cartel literature, influenced the design of the deal. Based mainly on primary sources from Swedish and British archives, this article contributes to the debate on the role of international cartels in the development of European multinationals and their relationship with US companies and export associations in the division of world markets.