Eon looks up but record mixed
The prospect of serious acquisition and merger activity in the European energy market has inflamed nationalistic instincts and enraged politicians. What a shame people are not more worked up about the economics of takeover-driven consolidation. For let's not mince words. Consolidation, an opaque and economically worthy sounding noun, will prove to be a euphemism for corporate enlargement and managerial hubris.
The EU's internal energy market has not been liberalised to the point where pan-European energy businesses will extract much value from integration and rationalisation. And all experience tells us that mega-mergers are more likely to destroy value than create it.
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