An examination into the markets for corporate control: Evidence on merger and acquisition deals involving Qatari companies

Abstract

Although a rich body of literature on acquisition deals and their distinguishing features exists in Western business settings, the current understanding of the governance discipline instituted by the market for corporate control in the emerging and rapidly growing economy of Qatar is severely underdeveloped. As the country is seeking to achieve its vision of becoming a preferred financial hub in the MENA region by hosting mega sport events and attracting significant foreign investments, the importance of the local market for corporate control as an external governance mechanism cannot be neglected. This study seeks to contribute to the building of a contextual knowledge in the field by providing empirical evidence on M&A transactions involving Qatari targets and acquirers. The collected data are analyzed in terms of both the idiosyncrasies of participating companies (i.e., industry and public/private status of target and acquiring firms; features of repetitive acquirers) and specific deal characteristics (i.e., absolute number and dollar value; diversifying versus consolidating, domestic versus cross-border, and synergistic versus disciplinary acquisitions; size of control premium; mode of financing; type of antitakeover defenses). Several recommendations for future research directions on M&A activities in Qatar are provided in the concluding section of the article