Mergers and acquisitions in the european tourism industry: the case of Spain and Germany

Abstract

[eng] The purpose of this thesis is to provide an overview on the rise in mergers and acquisition deals in the European tourism industry. The peculiarities of the industry are exposed, together with the definition of merger and acquisition, and their types. The incentives, advantages and disadvantages are analysed as they have an importance in the merging or acquiring companies’ decisions. Other relevant aspects studied are the negative effects that mergers and acquisitions can have on social welfare, which are the evidence of the need for regulation. The role of the European Commission as a competitive policy maker is summarized and a comparison of regulation policies between Spain and Germany is made. Finally, the growth strategy through mergers and acquisitions of Globalia, from Spain, and TUI Group, from Germany, are presented. The results show that, even if mergers and acquisitions can reduce consumer surplus and produce inefficiencies of allocation, they are still common. Competition authorities have allowed these deals due to the high concentration that exists in the tourism industry.