Due to changes in the operating environment, several licensed institutions, mainly commercial banks, had to merge (combine their operations in mutually agreed terms) or one institution takes over another’s operations (acquisitions).
The words “merger” and “acquisition” are commonly used interchangeably, although there is a slight difference in their meaning. A merger is the consolidation of two or more companies into one larger company for economic or strategic reasons. Typically, the businesses and management of both companies become one.
An acquisition occurs when one company otherwise called the “acquirer” takes over another company known as the “target” by purchasing a controlling interest in the target. In many cases, the acquired company ceases to exist and its stock (in the case of listed companies) ceases to trade while the acquirer absorbs the business and consolidates it under its management.
However, in other instances, an acquisition may only result in the target’s business being under the indirect ownership or control of the acquirer’s shareholders and management.
Mergers and acquisitions play an important role in the world of finance and are the most widely used strategy by the banking sector to strengthen and maintain its position in the marketplace.
Mergers and acquisitions are a relatively fast and efficient way to expand into new markets and incorporate new technologies.
An example of merger and acquisitions transactions is the Merger between Access Bank and Diamond Bank. The deal was strategic as it consolidated Access bank’s position as a tier-one bank with a strong capital base. The merger has contributed to healthy competition between the new entity and other existing banks and helped strengthen the Banking system.
Some of the reasons put forward for mergers and acquisitions are: to meet the increased levels of share capital; expand the distribution network and market share; and benefit from best global practices among others.
In addition, there are many benefits of mergers and acquisitions for both organizations involved and they include:
Revenue may increase with the elimination of redundant costs
Potential market share increases either across geographic borders or through loyal consumers willing to look at new products developed as a result of the merger or acquisition
The companies gain access to new resources and human capital previously held by their competitor.
Mergers and Acquisitions play several roles in the banking sector, which include:
Agent of growth
Many financial intermediaries use mergers and acquisitions to grow in size and leapfrog their rivals. In contrast, it can take years or decades to double the size of a company through organic growth.
To aid Competition
This powerful motivation is the primary reason why Merger & Acquisitions activity occurs in distinct cycles. The urge to snap up a company with an attractive portfolio of assets before a rival does so generally results in a feeding frenzy in hot markets.
Synergies
The banking sector also merges to take advantage of synergies and economies of scale. Synergies occur when two companies with similar businesses combine, as they can then consolidate (or eliminate) duplicate resources like a branch and regional offices, manufacturing facilities, research projects, etc.
Every million dollars or fraction thereof thus saved goes straight to the bottom line, boosting earnings per share and making the Merger & Acquisitions transaction an “accretive” one.
Domination
Most financial intermediaries also engage in mergers & Acquisitions to dominate the banking sector. However, a combination of two behemoths would result in a potential monopoly, and such a transaction would have to run the gauntlet of intense scrutiny from anti-competition watchdogs and regulatory authorities.
In conclusion, the banking sector has been undergoing major instances of Mergers and Acquisitions overtime for the achievement of consolidation of banks. It would also help institutions scale up quickly and gain a large number of new customers instantly. Not only does an acquisition give your bank more capital to work with when it comes to lending and investments, but it also provides a broader geographic footprint in which to operate.
Whilst growth might be achieved organically, mergers and acquisitions present a quick way to grow inorganically and achieve organizational objectives.
Featured Image Source: WATTAgNetGot a suggestion? Contact us: editor@connectnigeria.com
You might also like:
- How Do Companies Make Money from Social Media?
- Ultima Cards: Virtual Dollar Visa Cards Now Available to All Residents Across Africa
- The Investment Trap: Common Pitfalls When Raising Funds
- How to Plan for Major Life Events: A Guide to Financial Stability
all free 777 slots games
casino slots games online
free online slots machines
marketing acknowledgement
dissertation help service quality
dissertation thesis writing
thesis dissertation
books and dissertation about mafa people
dissertation express
dissertation writing services uk
help dissertation thesis advice
phd dissertation writing
dissertation writing service online
ma dissertation writing service
masters dissertation help
dissertation help scam
how long is a dissertation paper
dissertation research and writing
dissertation writing service
writing dissertation chapters
write my dissertation
help tutor
writing services
dissertation proposal sample
tips on writing a dissertation
order a dissertation
how long is a dissertation paper
dissertation statistics help
doctoral dissertation help thesis
help with dissertation
dissertation help
writing the doctoral dissertation
writing my dissertation
writing dissertation proposal
writing papers
edd dissertation topics
writing a masters dissertation
custom dissertation writing
write a dissertation abstract
mobile online casino
free cash bonus no deposit casino
casino sites
writing the doctoral dissertation
how long is a doctoral dissertation
mba dissertation help
real casino games online
no deposit free bonus casino
mobile casino games for real money
thesis or dissertation
dissertation writing advice
help dissertation dissertation help
mobile casinos
the best online casino
live online casino usa
doctoral dissertation writing assistance
best dissertation writing service review
writing dissertation service
free welcome bonus
casino reviews
casino games that pay real money
dissertation help
dissertation proposal template
how to write a dissertation proposal
casinos online real money
casino mobile
no deposit free bonus casino
professional dissertation help
writing help
what is a dissertation paper
mobile casino real money
best deposit casino bonus
top mobile casino
play mobile casino
real money online slots
online casino usa
casino bonus online
best no deposit bonus
best usa online casino
no deposit slots for real money
win real money online casino for free
best bonus casinos
best online casino real money
no deposit casino bonuses
win real money online casino for free
free sign up bonus online casino
best deposit casino bonus
mobile casino online
no deposit online casino
best online casinos for usa players
best online us casinos
vpn server
free vpn for netflix
what is the best vpn
online real money casinos
best casino welcome bonus
no deposit casinos
fastest vpn services
uf vpn
free lifetime vpn
best online casinos for usa players
mobile casino sites
sign up bonus casino
the best vpn
buy vpn with crypto
vpn service
welcome bonus casino
no deposit online casino
casino no deposit
vpn for windows free
should i buy vpn anonymously
best vpn for the money
free money no deposit
online real money casino
no deposit casino bonuses
fastest vpn services
windscribe free vpn
vypr vpn
kasino bonus
top online casinos
win real money online
best vpn deals
buy vpn with gift card
best vpn to change location
best online casinos usa
no deposit free bonus casino
mobile casinos for real money
online casino free money
best us online casinos
online usa casino
best vpn for japan
best vpn trial
best vpn for pubg
online casino free bonus no deposit
best online casinos for usa players
casino reviews
free adult personal ads
free personals site
best dating online site
the gay dating site
chubby chub gay dating
gay dating naked vh1
dating services contact china
[url=”https://adult-classifieds-online-dating.com”]dating free[/url]
bbw dating sites
the gay dating game
what are the names of gay dating sites
gay closet dating
free local dating
free personals site
dating seiten in schweiz
good dating sites
free dating without registration
best online dating website
dating service
free online
dating web
gay dating red flags
steve cardenas dating gay
gay ranchers and farmers dating
top rated dating websites
best dating sites for free
free single date
gay dating professional bodybuilders
gay dating in chicago
palm springs ca mature gay bisexual dating
absolutely free dating sites no fees ever
dating sites into trampling
date online
dating a bipilar gay guy
gay bdsm dating
tree gay men dating sites missouri
find single women
free online dating and personals
internet dating sites
win real money online casino
best us online casino
online casino bonus no deposit
real online gambling
online casino bonus no deposit
bingo gamble
gay chat tucson
gay chicago webcam chat software
free 60 minute trial phone chat gay
gay mature men chat group
free gay mens chat phone
gay and bi text chat
black bottom gay chat
gay chat room ontario ca
chat gay chat
gay univere men chat
profile tube boys user gay chat boi
zoom chat rooms gay chat
gay video chat surry county nc
google zoom gay chat room
free gay boy video chat
gay chat room upstate sc
zoom chat rooms gay chat
free cookeville tn gay chat rooms
most popular video gay chat
live gay young male sex chat rooms
gay masturbation chat
free rulette gay chat
gay chat ru=oulette
older gay chat
gay chat room finding sex
gay cumshot chat
free chat with men – live gay cams, free gay webcams at chaturbate
gay chat led roulette
old gay men video chat rooms
gay video chat apps ios
free xxx gay interational chat rooms in johnstown, pa
gay webcam chat software
wisconsin gay chat
top dateing sites
senior dating site
adult date site
connecting singles online members
absolutely free dating sites
online chat dating websites
internet dating services
best dating website in usa
best online dating sites
mature nl lesbian
meetme dating site
dating site online
best sites online dating
free adult personals
100% free dating site in europe
sat essay help
sat essay help
custom essay writing services reviews
essay revision service
law essay help
customized essay
premium essay writing service
buy essays online cheap
help writing an essay for college
the help essay prompts
help me write a compare and contrast essay
custom essay service
i cant write my essay
custom essays service
write my essay services
need help with essay
top essay editing service
best essay writing company
what are the best essay writing services
top custom essays
admission essay service
best custom essay writing services
help with writing essays at university
cheap essay writing service online
magic essay writer
best writing services
the help essay questions
help write essay for me
best medical school essay editing service
custom essay papers
best paper writing site
essay writing services usa
please help me write my essay
the best essay writing services
urgent essay help
buy my essay
writing essays services
lord of the flies essay help
college entrance essay writing service
essay writer software
write my essay students
great essay writers
online essay writing help
essay paper writing services
custom essay writing toronto
custom written essays
write my essay wikipedia
cheap custom essays
law school essay writing service
the best essay writing service
who will write my essay for me
cheap custom essay
cheap custom essay papers
cheap essay help online
best essay writing service review
custom essays essay help
essay writing service discount
essay writer reddit
essay homework help
mba essay service
discount essay writing service
writing custom essays
higher english essay help
custom order essays
custom essay writing canada
essay writing service best
essay service
instant essay writer
need help to write an essay
mba essay writing services
lord of the flies essay help
best college application essay service
buy essay cheap
essay writing service online
online essay help
best article writing service
which is the best essay writing service
write my essay for money
buy custom essay online
good essay writing company
graduate school essay writing service
english essay writing help
custom essays services
essay writers review
help with writing college application essay
buy essay online cheap
tok essay help
https://drugsoverthecounter.com/# over the counter essentials
coursework science
coursework support
design and technology gcse coursework
diuretics over the counter best allergy medications over-the-counter
over the counter erectile dysfunction pills over the counter urinary tract infection meds
over the counter eye drops for pink eye muscle relaxer over the counter
over the counter flu medicine best over the counter hair color
pink eye over the counter medicine best over the counter toenail fungus medicine
over the counter uti medicine best ed pills over the counter
https://stromectol.science/# ivermectin cream canada cost
https://amoxil.science/# amoxicillin 500 capsule
Commonly Used Drugs Charts. Medicament prescribing information.
ivermectin human
safe and effective drugs are available. earch our drug database.
Some are medicines that help people when doctors prescribe. All trends of medicament.
https://stromectolst.com/# ivermectin 4
Get warning information here. Get information now.
Best and news about drug. Long-Term Effects.
https://stromectolst.com/# where to buy ivermectin
Medscape Drugs & Diseases. Generic Name.
Generic Name. Medscape Drugs & Diseases.
https://stromectolst.com/# stromectol australia
All trends of medicament. All trends of medicament.
Get information now. Get warning information here.
https://stromectolst.com/# cost of ivermectin medicine
Generic Name. Drug information.
Prescription Drug Information, Interactions & Side. Learn about the side effects, dosages, and interactions.
https://stromectolst.com/# ivermectin pills canada
Comprehensive side effect and adverse reaction information. Everything what you want to know about pills.
Comprehensive side effect and adverse reaction information. drug information and news for professionals and consumers.
https://stromectolst.com/# cost of ivermectin 1% cream
Best and news about drug. Definitive journal of drugs and therapeutics.
Drug information. Get warning information here.
stromectol online
Long-Term Effects. earch our drug database.
Get warning information here. Best and news about drug.
ivermectin 3mg pill
Get warning information here. Definitive journal of drugs and therapeutics.
Everything what you want to know about pills. Medscape Drugs & Diseases.
https://stromectolst.com/# stromectol tablets
Drugs information sheet. Everything information about medication.
Read information now. What side effects can this medication cause?
ivermectin buy nz
Comprehensive side effect and adverse reaction information. Drug information.
Prescription Drug Information, Interactions & Side. Prescription Drug Information, Interactions & Side.
ivermectin new zealand
Long-Term Effects. Definitive journal of drugs and therapeutics.
Read information now. п»їMedicament prescribing information.
stromectol ivermectin
Read here. safe and effective drugs are available.
Generic Name. Some are medicines that help people when doctors prescribe.
https://stromectolst.com/# ivermectin cream uk
Best and news about drug. Read now.
п»їMedicament prescribing information. Read information now.
generic ivermectin cream
drug information and news for professionals and consumers. Cautions.
Prescription Drug Information, Interactions & Side. Everything about medicine.
can i order cheap nexium without dr prescription
Read now. Everything what you want to know about pills.
Everything what you want to know about pills. Get here.
can i purchase nexium without a prescription
Medscape Drugs & Diseases. Read now.
Top 100 Searched Drugs. Definitive journal of drugs and therapeutics. can i get avodart pills
Learn about the side effects, dosages, and interactions. Get warning information here.
Comprehensive side effect and adverse reaction information. Cautions.
lisinopril coupon
Read information now. safe and effective drugs are available.
Comprehensive side effect and adverse reaction information. earch our drug database.
lisinopril tabs
Some are medicines that help people when doctors prescribe. Get here.
Read information now. Actual trends of drug. where to get generic avodart pills
Everything information about medication. Drugs information sheet.
earch our drug database. Everything what you want to know about pills.
how can i get generic nexium prices
Everything about medicine. Some are medicines that help people when doctors prescribe.
Everything about medicine. Read information now.
can i buy generic levaquin without prescription
Top 100 Searched Drugs. Medscape Drugs & Diseases.
Cautions. Some are medicines that help people when doctors prescribe.
https://nexium.top/# can i purchase nexium without dr prescription
Everything information about medication. Prescription Drug Information, Interactions & Side.
Read here. Commonly Used Drugs Charts.
https://clomiphenes.com where to buy cheap clomid online
Read now. Read here.
Get here. Everything what you want to know about pills. https://amoxicillins.com/ amoxicillin canada price
Prescription Drug Information, Interactions & Side. Everything information about medication.
Read information now. drug information and news for professionals and consumers.
cost of generic clomid
Read information now. Some trends of drugs.
Drug information. Read now.
https://finasteridest.com/ cost of propecia pills
Actual trends of drug. Get here.
Some trends of drugs. Definitive journal of drugs and therapeutics.
cost generic clomid now
All trends of medicament. safe and effective drugs are available.
What side effects can this medication cause? Cautions. buy amoxicillin online cheap
safe and effective drugs are available. Read information now.
Read information now. Comprehensive side effect and adverse reaction information.
https://clomiphenes.com where to buy clomid without insurance
Prescription Drug Information, Interactions & Side. Top 100 Searched Drugs.
What side effects can this medication cause? Medicament prescribing information. amoxicillin generic
Cautions. Medscape Drugs & Diseases.
Read now. Definitive journal of drugs and therapeutics.
https://finasteridest.online can you get generic propecia without prescription
Long-Term Effects. Long-Term Effects.
Some are medicines that help people when doctors prescribe. Some trends of drugs.
can i buy zithromax over the counter
Medscape Drugs & Diseases. Everything information about medication.
Generic Name. Read now.
https://finasteridest.com/ how to get generic propecia pill
Cautions. Everything information about medication.
Top 100 Searched Drugs. Some trends of drugs.
buy zithromax online cheap
drug information and news for professionals and consumers. What side effects can this medication cause?
Learn about the side effects, dosages, and interactions. Read information now.
can i order cheap propecia
Everything about medicine. Everything about medicine.
Read information now. Cautions.
compare ed drugs
Prescription Drug Information, Interactions & Side. Learn about the side effects, dosages, and interactions.
Read information now. Get warning information here. amoxicillin 500
Get here. earch our drug database.
Medscape Drugs & Diseases. Everything information about medication.
gnc ed pills
Long-Term Effects. Prescription Drug Information, Interactions & Side.
Best and news about drug. Prescription Drug Information, Interactions & Side.
gnc ed pills
Read here. Drugs information sheet.
drug information and news for professionals and consumers. Generic Name.
cheap erectile dysfunction pill
earch our drug database. drug information and news for professionals and consumers.
Long-Term Effects. Get warning information here.
how to cure ed
Everything information about medication. Best and news about drug.
All trends of medicament. Read now.
canadian pharmacies online
Medicament prescribing information. Drugs information sheet.
Get warning information here. Get here.
https://canadianfast.com/# prescription drugs
Get here. Medscape Drugs & Diseases.
Commonly Used Drugs Charts. Comprehensive side effect and adverse reaction information.
canadianpharmacyworld
Prescription Drug Information, Interactions & Side. Actual trends of drug.
Commonly Used Drugs Charts. Drugs information sheet.
canadian pharmacy viagra 100mg
Cautions. Read now.
Drug information. п»їMedicament prescribing information.
buy prescription drugs online
All trends of medicament. Some trends of drugs.
Everything about medicine. Drugs information sheet.
https://canadianfast.com/# prescription drugs without doctor approval
Everything what you want to know about pills. Some trends of drugs.
Drugs information sheet. Read information now.
https://canadianfast.com/# cat antibiotics without pet prescription
All trends of medicament. Some trends of drugs.
Read information now. Cautions.
tadalafil without a doctor’s prescription
Comprehensive side effect and adverse reaction information. Read information now.
Some are medicines that help people when doctors prescribe. Read here.
prescription drugs without doctor approval
What side effects can this medication cause? Some are medicines that help people when doctors prescribe.
Everything about medicine. Definitive journal of drugs and therapeutics.
head office of viagra in toronto
Everything what you want to know about pills. Generic Name.
Drug information. Drug information.
https://viagrapillsild.online/# compro viagra
Drugs information sheet. Drugs information sheet.
drug information and news for professionals and consumers. Get information now.
sildenafil tablets 100mg uk
Long-Term Effects. Some are medicines that help people when doctors prescribe.
Read now. What side effects can this medication cause?
viagra before and after pics
Prescription Drug Information, Interactions & Side. Read here.
Get here. п»їMedicament prescribing information.
where can i buy cialis
Read here. Read information now.
Medscape Drugs & Diseases. Everything what you want to know about pills.
cheap cialis 40 mg
Read here. What side effects can this medication cause?
Get information now. Some trends of drugs.
https://tadalafil1st.online/# cialis professional vs cialis
Get warning information here. Medicament prescribing information.
drug information and news for professionals and consumers. Get warning information here.
https://tadalafil1st.com/# canadian pharmacy generic tadalafil
Get warning information here. Everything information about medication.
Get here. Medscape Drugs & Diseases.
where to get cialis cheap
All trends of medicament. Read information now.
Actual trends of drug. Read information now.
buy tadalafil 20mg price canada
Read information now. Definitive journal of drugs and therapeutics.
Generic Name. Actual trends of drug.
best tadalafil generic
drug information and news for professionals and consumers. Best and news about drug.
Everything about medicine. Some are medicines that help people when doctors prescribe.
cialis original online
Read now. Long-Term Effects.
Commonly Used Drugs Charts. Read here.
tadalafil online canada
Actual trends of drug. Generic Name.
Get warning information here. What side effects can this medication cause?
https://tadalafil1st.com/# tadalafil from india
Everything about medicine. Long-Term Effects.
Commonly Used Drugs Charts. Prescription Drug Information, Interactions & Side.
where to buy amoxicillin over the counter
safe and effective drugs are available. Commonly Used Drugs Charts.
buy online pharmacy: ed remedies – pet meds without vet prescription canada
online drugs: do i have ed – prescription drugs without doctor approval
prescription drugs: ed pills that work quickly – erectile dysfunction
Quand une femme prend du Viagra homme: Viagra vente libre pays – Viagra prix pharmacie paris
sildenafilo cinfa 25 mg precio: sildenafilo 100mg precio espaГ±a – sildenafilo 100mg sin receta
sildenafilo sandoz 100 mg precio: comprar viagra en espaГ±a envio urgente – viagra para mujeres
comprar viagra en espaГ±a envio urgente: Viagra online cerca de Madrid – viagra online cerca de malaga
sildenafilo 100mg sin receta: comprar viagra en espaГ±a envio urgente contrareembolso – comprar viagra sin gastos de envГo