12 Efficiency Assessment

12.01 Mergers consolidate the ownership and control of business assets, including physical assets (for example, plant) and intangibles (for example, brand reputation). They can enhance corporate—and wider economic—performance by improving the efficiency with which business assets are used. Further reasons for firms to engage in mergers and acquisitions include efficiencies arising from the mergers,1 and the tendency of some countries to endorse the concept of ‘national champions’.2 12.02 However, mergers may eliminate any competition that exists between the...