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European Transnational Concentration
Mazzolini, Renato
16/3  (Spring 1974): 43-51

During the last decade there has been an increasing interest in the European Economic Community (EEC) in international consolidations. The attractiveness of international consolidations includes economies of scale in areas such as research and development or marketing, implementing a more European strategy internationalizing corporate scope to take advantage of the developing common market. Using a series of interviews with top executives of 154 major corporations from the six original EEC countries and Great Britain, a recent study has attempted to answer several questions related to international consolidation. The major objective of this study is to examine the way in which European top management-those who make the ultimate decision on whether or not transnational consolidations materialize-see the problem. Legal and fiscal barriers are generally believed to be major-often the only-impediments to transnational concentration. Management has devised several solutions to the legal problem. Although there are many variations, one can characterize these solutions by saying that a concentration is formalized by financial ties, typically involving exchange of shares between the two partners.

 

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