Introduction

There were four merger waves between the early 1960s and 2005. These broadly paralleled the more general trends in the world economy during this period. Whereas in industries such as those analyzed by Alfred Chandler these waves tended to be related to the technological development of firms, fluctuations in the stock market, and the search for economies of scale and scope; however, in industries such as alcoholic beverages and cosmetics other determinants played a predominant role. Firms domiciled in the United Kingdom seem to have engaged in higher levels of mergers and acquisitions at an earlier time than firms from continental Europe, the United States, and Japan, which for a long time had quite distinct systems of corporate governance.

This chapter focuses on analyzing the impact of brands on firm decisions to merge with or acquire others, and how this influenced the nature and scope of the successive merger waves that have transformed the industry. I provide a summary of the main mergers and acquisitions from 1960 to 2005 and analyze the different merger waves, providing empirical evidence for each one. Finally, I highlight the increasing role of brands in shaping the growth and survival strategies of multinationals in this industry.