Mergers & Acquisitions as Drivers for Circular Global Value Chains: A Focus on Fashion

This thesis explores the transition to a circular economy and the adoption of circular business models, focusing on how companies can create sustainable global value chains through the integration of Environmental, Social, and Governance (ESG) principles. It reviews the concept of the circular economy and examines the market drivers behind its adoption, including resource efficiency, regulatory pressures, and consumer demand for sustainability. The research emphasizes the role of mergers and acquisitions (M&A) in this transition, showing how businesses are acquiring startups and companies to access innovative materials, technologies, and waste valorization processes. These acquisitions enable companies to transform traditional business models into circular ones, reducing costs, minimizing waste, and enhancing sustainability. In the fashion industry, multiple M&A case studies are analyzed, demonstrating how companies are acquiring firms that specialize in biotextiles and bio-based materials to implement circular practices. These examples provide insights into how businesses can successfully transition to a circular economy while meeting ESG objectives.