ABSTRACT

The study on mergers and acquisition is a crucial one especially when the selected effects of the bank consolidation policy in the present banking dispensation, especially by some banks that lacks the capital and asset base for Individual corporate existence in the monetary and financial markets. This strategic financial move resulted into positive performance indices that adopted this financial strategic for growth and survival. This study, therefore focuses on mergers and acquisitions on the performance the companies in Nigeria using a study of selected banks such as access bank plc, united bank for Africa plc, fidelity bank plc, diamond bank plc, union bank plc and investment banking and trust company plc (IBTC), relatives to corporate profitability then shareholders ,fund and companies asset value. The objectives of the study were to access the effect of mergers and acquisition of the total asset value. To examine the effect of mergers and acquisition on the bank shareholders forum and to find, out its associated problems as well as its recommendation as a propound solution to it. In carrying out this research secondary data were generated from a group five year financial summary of he six selected banks for the period of (2003-2007)(2004-2008). Regression and T-statistics were used In data analysis and testing the three hypothesis. 5% level of significance was provided for against error and 95% of work done is assumed to be correct. From the study, the findings review that there is improvement in the profitability indices, asset value and shareholders fund of the merged and acquired six banks. In my recommendation, the board and management of banks should pay greater attention to mergers and acquisition and its development for the growth of Nigerian economy, as this will eliminate the issue of liquidation or systematic distress in the Nigerian banking sector. Government and the other regulatory authorities should initiate solid rules and regulations that will guide the exercise so that it will not be a room for incapable to continue operation under their holding or parent company and finally merged and acquired banks must formulate rule and regulation guiding them so that they will achieve their main motive and stand firm in the competitive world, given globalization.