Title: The impact of mergers and acquisitions on shareholder wealth of acquiring companies in the mining industry

Authors: George Giannopoulos; Vita Spurgeon; Mahmoud Elmarzouky

Addresses: Kingston Business School, Kingston University, Kingston Hill Campus, Kingston Hill, Kingston upon Thames, KT2 7LB, UK; Department of Business Administration, University of West Attica, 12243, Athens, Greece ' Datamine International, Hanover House, Queen Charlotte Street, Bristol, BS1 4EX, UK ' University of St. Andrews Business School, University of St. Andrews, The Gateway, North Haugh, St. Andrews, KY16 9RJ, UK

Abstract: This study explores the impact of mergers and acquisitions (M&As) on acquirer shareholders' wealth in the global mining industry. Using an event study approach on a sample of 9,806 M&A deals from 1990 to 2014, we find that mining industry acquirers generally experience positive abnormal returns (AR) around the announcement date. Notably, the M&A wealth effect varies significantly based on specific deal characteristics. Cross-border acquisitions, focus-increasing acquisitions, and acquisitions resulting in full ownership of the target yield higher abnormal returns. Conversely, large deals often result in lower returns. These findings highlight the role of strategic decision-making in M&A transactions within the mining industry, with implications for both industry practitioners and policymakers.

Keywords: shareholders' wealth; mining industry; mergers and acquisitions; M&A.

DOI: 10.1504/IJBGE.2025.146341

International Journal of Business Governance and Ethics, 2025 Vol.19 No.3/4, pp.432 - 456

Received: 10 Feb 2023
Accepted: 25 Sep 2023
Published online: 22 May 2025 *

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