Title: The impact of post-merger integration on cost savings: the case of Greece

Authors: Marinos Giannopoulos; Dimitrios N. Koufopoulos

Addresses: Brunel Business School, Brunel University, Uxbridge, Middlesex UB8 3PH, UK ' Brunel Business School, Brunel University, Uxbridge, Middlesex UB8 3PH, UK

Abstract: The overall aim of this paper is to complement and enhance existing M&A literature by examining the impact of two post-acquisition actions, of asset divestiture and resource redeployment on post-acquisition cost savings of Greek M&A deals. The results indicate the process of divesting the acquirer's assets does not lead to systematic cost savings and can even hurt costs. They also suggest that the acquirer is more effective in rationalising its own assets than those of the target. The empirical analysis revealed that divestiture of the acquirer's assets has a negative impact on cost savings, while the divestiture of the target's assets does lead to cost reductions. In addition, when further potential cross-effects were considered, it was found that resource redeployment's effect on cost savings has a positive and significant effect on both the acquirer's and target's resource redeployment.

Keywords: cost efficiency; resource-based view; RBV; M&A; mergers and acquisitions; asset divestiture; resource redeployment; cost savings; post-merger integration; Greece; global business advancement; post-acquisition; acquirer assets; target assets.

DOI: 10.1504/JGBA.2014.065589

Journal for Global Business Advancement, 2014 Vol.7 No.4, pp.303 - 324

Published online: 30 Apr 2015 *

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