Cross-border Mergers and Acquisitions and Development

Cross-border mergers and acquisitions are a part of economic life in a world of liberalising and globalising economies. However, more open markets in the interest of growth and development do not equate with the relaxing of public vigilance. The new circumstances call for greater vigilance, as well as stronger and better governance. This report looks at the contribution of foreign direct investment to development. It also examines the perception that this contribution may be affected by the way investment enters a country. Investment may come through a merger or an acquisition, and this can raise concerns over employment, ownership and market structure.