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Why investors should be wary of 'mergers of equals'

Stock price of combined company tends to underperform after deals

©The Financial Times Limited 2020 Mar 1, 2024 / 12:24 PM IST
All Rights Reserved. FT and Financial Times are trademarks of the Financial Times Limited Not to be redistributed, copied or modified in any way.
Why investors should be wary of 'mergers of equals'

Ninety-five per cent of mergers of equals are in the same industry, with financials, energy, consumer discretionary and healthcare the most common sectors.

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