Introduction

Abstract

The dynamic interaction of a continuous integration of global product markets, progressive technological developments, and heightened pressure from international capital markets vastly contributes to an increasing worldwide consolidation and concentration of industries.¹ In this rapidly evolving global competitive environment, German companies are faced with positioning themselves by expanding internationally in order to reallocate their resources, penetrate different regions, and to access new technology.² As an efficient and fast strategic alternative to organic growth, geographic diversification through cross-border mergers and acquisitions (“M&A”) represents the predominant means for German companies to strengthen their global market position by seeking lucrative international growth opportunities.³

See Shmizu et al. (2004), p. 308.

See Grube (2005), p. 60.

See KPMG (2005), p. 421; Hitt (2000), p. 11f.