Business Mergers Could Take Their Toll

Being a place-based business, in economic development someone (some place) invariably wins and someone (some place) loses when facility and job consolidation occur as part of a business merger or acquisition.

Two recent big M&A deals remind us of this: Brown and Williamson/RJ Reynolds and FleetBank/Bank of America. Boston and Louisville could become the losers on these deals.

One reality to keep in mind is that more M&A deals will occur as the economy continues to grow and more foreign investors look for ways to buy their way into the U.S. market. 85 percent of all foreign direct investment (FDI) is accounted for my M&A activities and not new startups or greenfield investments.

Go here to read more about these two developments.