Market power consolidation and M&A success: A study of US-American and German utility takeovers


  • Robert Fraunhoffer Chair of Corporate Finance, Darmstadt University of Technology, Hochschulstrasse 1, 64289 Darmstadt, Germany
  • Andreas Freytag Chair for Economic Policy, Friedrich-Schiller Universität Jena, Jena, Germany
  • Dirk Schiereck Chair of Corporate Finance, Darmstadt University of Technology, Darmstadt, Germany



Energy utilities, Mergers and acquisitions, Market power.


A wave of mergers and acquisitions (M&A) was observed in the North American and European energy utilities market. We analyze the impact of these M&A transactions on market power, studying 139 takeovers of energy utilities by applying event study methodology. Stock price reactions of acquiring and target firms as well as of their competitors are used to detect changes of market power. While we do not find any significant results pointing in this direction for transactions in the US, our findings indicate that the potential to increase market power is indeed an important motive for takeovers within the German energy utilities market.


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