Does post merger financial performance improve after agrifood mergers of cooperatives? An empirican analysis

This study was carried out to characterize the mergers and acquisitions undertaken in the Spanish agrifood sector during the period 1995-2005 and has two objectives. Firstly, it aims to determine the manner in which economic-financial factors influence the type of merger carried out (merger by formation of a new legal person and merger by acquisition), and the role played by cooperatives (acquirer, acquired or cooperative involved in a merger by formation). Secondly, it aims to determine whether these mergers have contributed to reaching any of the objectives they were set out to achieve: improving the economic-financial situation of the companies involved, increasing income and reducing relative costs. The results obtained show that on average, following a merger, there were no statistically significant improvements in the economic-financial indicators studied.