Microeconomic impacts of the mergers and acquisitions of energy industries in the World

Vol. 25 No. 4 (2005)

Oct-Dec / 2005
Published March 27, 2020
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Pinto Jr., Helder Queiroz, and Mariana Lootty. 2005. “Microeconomic Impacts of the Mergers and Acquisitions of Energy Industries in the World: An Analysis for the 1990’s”. Brazilian Journal of Political Economy 25 (4):439-53. https://centrodeeconomiapolitica.org/repojs/index.php/journal/article/view/652.

Microeconomic impacts of the mergers and acquisitions of energy industries in the World

an analysis for the 1990’s

Helder Queiroz Pinto Jr.
Professor Adjunto do Instituto de Economia da UFRJ (IE-UFRJ)
Mariana Lootty
Pesquisadora Associada do Grupo de Economia da Energia do IE-UFRJ — Bolsista CNPq.
Brazilian Journal of Political Economy, Vol. 25 No. 4 (2005), Oct-Dec / 2005, Pages 439-453


The energy industries have witnessed a significant growth of global mergers and acquisitions (M&A´s) process in the 1990´s. According to Unctad statistics, the total amount of global M&A deals (domestic and cross borders) on the electric, oil and gas sectors has recorded US$ 329 billions on the 1990-1999 period. The present paper sheds light on M&A process occurred on the energy industries during this period and, based on a sample of 248 transactions carried out by 18 big energy enterprises, develops an empirical microeconomic analysis about the impacts of these transactions over the performance of the firms involved. Overall, the results show significant improvements on the firms’ performance after M&A operations, regarding the following variables: sales, net profits, assets, dividends, and, to a less extent, the ratio (net profits/sales).

JEL Classification: L1; L94;, L95; C14.

Keywords: Energy industry Mergers and acquisitions Non-parametric analysis