Mergers and acquisitions form the majority of FDI deals in the developed world, but remain relatively scarce as a mode of entry in the developing world. The purpose of this research was to investigate the macroeconomic profile of developing countries which attract greater M&A activity in the developing world. The extant literature served as a guide in assembling a list of predictor variables as proxies for macroeconomic factors identified as being drivers of M&A as an entry mode of choice. In order to isolate the significant macroeconomic factors influencing M&A as a mode of entry, two statistical analyses were employed, namely cluster analysis and principal component analysis. These methodologies enabled first a meaningful separation of the country data in order to overcome the effects of high variance and clustering identified in exploratory scatterplots and second allowed for the identification of regional and country effects in M&A activity. The study distinguished several variables relating to the market potential, institutional, infrastructural and sectoral structure of an economy as being significant in M&A activity at a regional level. At the country level of M&A attraction the significant findings were more specific. The presence of a democracy proxied by the variable voice and accountability, a decreased dependency on mining resources as a percentage of GDP and the sectoral make-up and level of diversification of a country were found to influence the attraction of M&A’s. The complex and broad nature of this paper has the intention of creating a platform from which several more specific studies on M&A attraction in developing economies may be launched. Copyright / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted

Zugl.: Münster (Westfalen), Universiẗat, Diss., 2007. / Includes bibliographical references (p. [392]-420) and index.

Thesis (MBA (Business Management))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: A number of studies analysing the success, or lack thereof, of mergers and acquisitions have been done in the United States and Europe. Very little is known about these transactions in South Africa. The aim of this study is to examine a successful South African acquisition transaction and to compare that to theory derived from findings in the United States and Europe. Barclays acquired 53.96 percent shareholding in Absa in 2005 for R29.7 billion, representing the biggest direct foreign investment in history in South Africa, and also the biggest investment by Barclays outside the United Kingdom. The envisaged R1.4 billion synergies were realised 18 months early, indicating that the integration of the two entities, Absa and Barclays, was a success. Research in the United States and Europe indicates that companies may consider investing in mergers or acquisitions for reasons such as expansion, market entry, economies of skill and scale, geographic motivations and financial reasons. Only market entry did not serve as motivator in the case of the Absa-Barclays transaction. Reasons stated for the success of the transaction correlate well with findings in the United States and Europe, including the prompt appointment of new leadership, the establishment of clear goals, a strong integration structure, well developed communication channels, addressing of cultural issues and active risk management. The only aspect that did not receive particular attention was a focus on the external client. Possible pitfalls that were negotiated successfully during the transaction include Barclays not paying too high a premium for the Absa shares, using the best suited financial structure, focussing on the implementation of the transaction, as well as merging for the right reasons. / AFRIKAANSE OPSOMMING: Daar bestaan ‘n hele paar studies wat die sukses, of gebrek daaraan, van samesmeltings of aankoop van maatskappye beskyf in die Verenigde State van Amerika (VSA) en Europa. Daar bestaan egter baie min inligting oor soortgelyke transaksies in Suid-Afrika. Die doel van hierdie studie is om ‘n suksesvolle Suid-Afrikaanse transaksie te vergelyk met teorie wat afgelei is uit resultate verkry in Europa en die VSA. Barclays plc het in 2005 beheer geneem van 53.96 persent van Absa aandele teen ‘n totaal van R29 miljard. Dit verteenwoordig die grootste direkte buitelandse belegging in Suid-Afrika in die geskiedenis, asook die grootste belegging van Barclays buite die Verenigde Koninkryk. Die verwagte R1.4 miljard se volhoubare sinergieë was behaal 18 maande vroeër as verwag, wat daarop wys dat die integrasie van Absa by Barclays suksesvol was. Navorsing in die VSA en Europa dui daarop dat maatskappye samesmeltings en aankoop van maatskappye oorweeg vir redes wat insluit uitbreiding van die maatskappy, die binnedring van nuwe markte, skaal en vaardigheids ekonomieë, geografiese motiverings, asook finansiële redes. In die geval van die Absa-Barclays transaksie was al die bogenoemde redes relevant, behalwe die binnedring van nuwe markte. Redes vir die sukses van die transaksie vergelyk goed met die redes gevind in die VSA en Europa; dit sluit in die spoedige aanstel van die nuwe leierskap, duidelik gekommunikeerde doelstellings, ‘n sterk integrasie struktuur, goed ontwikkelde kommunikasie kanale, adressering van kulturele aspekte, asook aktiewe risiko bestuur. Die enigste aspek wat nie aktief bestuur is nie is die fokus op eksterne kliënte. Moontlike struikelblokke geïdentifiseer in Europese en Amerikaanse studies, wat suksesvol bestuur is, sluit in dat Barclays nie te veel vir die aandeel in Absa betaal het nie, die gebruik van die regte finasiële struktuur, fokus op die integrasie proses asook samesmelting vir die regte redes.