Cross Border Mergers of European Listed Companies : The Choice of a Reference Marketplace as a Relevant Criterion

Résumé En

The recently observed multiplication of cross-border merger transactions among companies listed on European stock exchanges invites one to wonder about the future of the listing of the stock of the absorbing or newly-created company. In this regard, when entering into a strategic analysis regarding the structure and modalities of a contemplated cross-border merger transaction between listed companies, the choice of the market place to be retained as the future reference market for the stock of the absorbing or newly created entity should not be considered meaningless. Such a choice should be an integral part of the legal and practical elements to be taken into account in order to determine the optimal structure to retain. It appears that the choice of a future reference marketplace itself depends on a number of parameters, among which are the typology of the current or sought after shareholding structure or the general environment of the financial place to be retained. When conducting such an analysis, it appears the Paris market place seems perfectly suited to become the reference market place for a number of recently merged companies. JEL Classification : K22