German mergers & acquisitions in the USA

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In early 2006, BASF AG acquired the U.S. company Engelhard Corporation in a lengthy and somewhat hostile transaction to enhance its competitive position in the U.S. market. This acquisition follows significant purchases by other German firms, such as Daimler-Benz and Deutsche Telekom, in the past decade. The increasing globalization of capital and product markets has prompted many mid-sized German companies to pursue opportunities in the U.S., which offers more dynamic growth potential compared to stagnant European markets. Such transactions in the key consumer market are expected to benefit German acquirers and generate positive investor reactions. However, the actual outcomes remain uncertain. Despite the high volume of cross-border transactions, research on the success of mergers and acquisitions, particularly those involving U.S. targets, is limited. Bernd Wübben's thesis aims to address this gap by providing empirical evidence. Utilizing capital market data and executive surveys, he evaluates the overall success of U.S. acquisitions by German firms and identifies the characteristics of both acquiring and target companies, as well as the acquisition structure, that significantly influence transaction success.