| Abstract [eng] |
Ugianskienė, V. (2021). Evaluation of the economic impact of a companies merger in the electronic communications sector. Master Thesis. Vilnius University, Siauliai Academy, Institute of Regional Development, Siauliai. Economic impact of merger of entities in electronic communication sector has been analysed in this master thesis. That is why the goal of this paper is to understand the complex economic impact for the electronic communication sector in country with small size economy where business competition culture is only developing, setting the main focus on economic impact of a merger, which is being expressed by company, consumer, market and governmental aspects. The concept of mergers and acquisition and its significance have been evaluated using method of summarizing scientific literature and grouping data found there and that is how the first goal of this work have been reached. In the process of reaching the second and third goals of the paper the author delves into the motives of mergers and acquisitions as well as the approaches and methods of it, the analysis of various researches about mergers and acquisitions have been performed. Based on the information systematized in the theoretical part of the work, the fourth task of the work is implemented - a methodology for assessing the economic value generated by organizational mergers and acquisitions have been developed. The economic impact of mergers and acquisitions on the market, consumers, the company and the government in the case of the merger of AB “Telia Lietuva” have been assessed during the implementation of the last task and using the assessment tools provided in the methodology. Assessment the impact of the merger at company level shows a very clear positive synergy of the merger. The merged entities were able to achieve better results in terms of revenue, cost reduction, profitability and free cash flow. Although the clear trends of not that effective asset management of the company have been indicated as well. This merger of AB “Omnitel” and “Teo LT” also had significant impact on changes in market situation and the effectiveness of competition between all the stakeholders in it. It was observed that with the decrease of AB “Telia Lietuva” market share, the company's revenue did not decrease, on the contrary, it has increased, and the analysis of the HHI index showed that the merger increased market concentration. Author also conclude that the merger had a negative effect on the market and on competitors, affecting the conditions for effective competition as well as position of competitors in the market. It was noticed that the merger made negative impact for some of the services company provides but other services experienced positive effects so the total impact for consumers is zero after this merger. Summarizing the effects of the merger from the government's point of view, it can be concluded that the government is adversely affected. In this merger case the government collects less taxes to country’s budget than projected in case where entities wouldn’t have been merged, and in terms of investment, the additional socio-economic benefits are unchanged. |
