The rapidly increasing merger activity in Swedish industry has been one of the most noticeable external signs of the structural change of the 1960's. The present investigation provides the first complete account at the merger activity in Sweden in the postwar period. The material is discussed and analyzed with respect to the extent of mergers in different industries and among large and small firms. In addition, the profitability, solvency, and growth of purchased firms are studied.
A separate chapter is devoted to studying the importance of mergers for the growth of Swedish firms whose stocks are traded on the stock exchange. For each of these firms, the growth rate is divided into the part accounted for by mergers and that due to internal growth. The motives and considerations behind the firms' choice between growing through purchasing other firms or through internal growth via new investments are also discussed thoroughly.
