Literature review on merger and acquisition

Abstract

Merger and Acquisition (M&A) is a way for companies to grow faster than organic business growth and can be a channel for companies to strengthen their global market position and increase competiteveness. M&A activities in the world have a large volume and value of several major commodities such as coal, industrial metal, silver, lead, zinc, copper, steel, aluminum etc. In 2018 (January to December) the total value of M&A transactions for the coal and metal sector reached USD 60 bio with the largest portion in coal commodities and transaction volume of 320 transactions. M&A is one of the strategic options in corporate restructuring activities that can provide more access to companies in increasing profits, market control or market share and increasing competitiveness (competitive advantage) to face the world market which is currently unstoppable. In this study, the problem to be answered is what are the theories behind the occurrence of M&A and also previous research that has been done related to M&A. To answer this problem, the literature review method will be used. The results obtained are expected to be used in future research in all M&A events. With this literature review, the motive behind the occurrence of M&A can also be well known.