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Cass M&A research cited in parliamentary committee

Vince Cable says study led to thinking u-turn on takeovers

Business Secretary Vince Cable cited a Cass study on the economic impact of M&A in a parliamentary hearing on bank lending and growth.

Mr Cable, who was giving evidence before the Business, Innovation and Skills Committee, said the study led him to re-think his view on takeovers.

The study, which was published in 2011, found that the UK economy benefits from an average short-term boost of £178m per deal, countering the long-held view that takeovers are damaging.

Mr Cable said the study showed that takeovers had "substantial" benefits for companies and the UK as a whole.

He added: "(The study) challenges the orthodoxy which I have had for some time that we should be suspicious of merger activity in terms of its overall effects."

Deputy Director of the M&A Research Centre and author of the research, Anna Faelten, said: "It is good to know that research conducted at Cass is influencing policymakers at the highest levels of Government and contributing to important debates on matters concerning the UK economy."

Mr Cable was giving evidence before the Business, Innovation and Skills Committee on 17 July.

Download a copy of 'The Economic Impact of M&A: Implications for UK firms'

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