Journal of Industry, Competition and Trade

, Volume 8, Issue 3, pp 269–293

Cross-Border Mergers & Acquisitions Policy in Service Markets


DOI: 10.1007/s10842-008-0038-x

Cite this article as:
Norbäck, PJ. & Persson, L. J Ind Compet Trade (2008) 8: 269. doi:10.1007/s10842-008-0038-x


We provide facts showing that in service markets: (i) restrictions on foreign direct investment (FDI) are under reform, (ii) cross-border Mergers & Acquisitions dominate as the entry mode of FDI, and (iii) there is often a high market concentration. Based on these facts, we present a model for analyzing cross-border merger and acquisition policy in liberalized service markets taking into account efficiency and market power effects. Our findings suggest that a merger policy, but not a discriminatory policy towards foreigners, seems warranted. Moreover, policies ensuring competition for domestic target firms seem warranted. In this vein, harmonization of the EU takeover regulations may particularly benefit assets owners in countries with many target firms.


cross-border mergersmerger policyservice markets

JEL Classification


Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  1. 1.Research Institute of Industrial Economics (IFN)StockholmSweden