A transition to natural and renewable resources is deemed necessary to preserve the environment and satisfy future energy needs globally. In this context, green economy can be considered a viable alternative paradigm that preserves growth expectations while protecting the earth’s ecosystems.

The objective of this study is to investigate whether “green” acquisitions represent a suitable way to support the green economy’s growth, given that public subsidies alone do not suffice. To this end, we analyse bidders’ post-acquisition performance (return on assets), based on data from the most recent deals, and try to decode whether bidders that “green” themselves find the potential to improve their financial performance and simultaneously enhance their corporate image.

Results confirm that bidders opting for “green” deals can obtain better financial outcomes compared to firms that perform deals in other sectors. This implies that firms may favor such transactions both to foster their external growth and obtain better operating and financial results, while attributing a green identity to their corporate image and protecting the environment. These findings bestow and elevate confidence in the potential of relevant research, raising focus on unexplored Mergers and Acquisitions (M&A) aspects of growing interest among investors worldwide.