Merger patterns in the European food supply chain

This paper investigates merger activity in the food supply chain in Europe as a whole, with an emphasis upon eight individual countries that were most merger active. It finds that M&A activity (vertical, horizontal, inward, and outward) has been substantial in both the production and distribution parts of the supply chain. Using spectral analysis, it also concludes that: (i) there are regular cyclical patterns in merger activity in seven of the eight countries; (ii) most countries exhibit strong coherency with overall EU merger activity in the food industry; (iii) the relative cyclical pattern of mergers in food manufacturing and retailing varies country to country; (iv) there is some evidence that mergers in manufacturing lead or Granger cause mergers in retailing; and (iv) patterns of merger activity in each of the countries studied (except for the UK and the Netherlands) are linked, at least in part, to business and capital market cycles.