Restructuring of the Danish pork industry: The role of mergers and takeovers, 1960–2010

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Abstract

This article examines the origins and effects of the evolution of the Danish pork industry characterised by three main merger waves resulting in 43 realised mergers and takeovers. The findings illuminate–in contrast to the traditional strategically motivated rationale–that the majority of the mergers were realised by cooperatives due to the inability to give the pig farmers competitive yearly refunds vis-à-vis local competitors, to financial difficulties or to the lack of investment capability of one of the merging parties. Despite a high-risky strategy, mergers and takeovers became the preferred consolidation mean due to capital constrains and the ‘close’ ownership structure of the cooperatives. Moreover, the study demonstrates that the outcomes of the M&A activities were generally positive.

Original languageEnglish
JournalBusiness History
Volume61
Issue number6
Pages (from-to)971-1004
ISSN0007-6791
DOIs
Publication statusPublished - 18. Aug 2019

Keywords

  • Agency Theory
  • Cooperative Firms
  • Industrial Economics
  • Industry Restructuring
  • Mergers and Takeovers
  • Pork Industry
  • Technological Change

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