ABSTRACT

This research work explores mergers and acquisitions as viable options for survival of companies in Nigeria. It covers the Nigerian financial sector, taking Access Bank as a case study. Merger is defined as any combination or joining of two or more firms while acquisition is the outright purchase of one company of the controlling interest in the share capital of another company. The objective of this research is to show whether Merger and Acquisitions are viable option, for survival of Nigeria Banks; ascertain if Merger and Acquisition of banks help to increase profitability and growth in the financial sector and to determine if Merger and Acquisitions will ensure a diversified, strong and reliable banking sector. Three hypotheses were stated in line with the objective. The research methodology and design is covered in chapter three (3). In carrying the research, primary and secondary sources of data were used. This includes the use of questionnaire, journals, and others. The questionnaire from different levels and branches of Access Bank Plc in Umuahia. The population size is 68 staff and the sample size which was derived using the Yaro Yemevis formula is 58 staff. In chapter four, the research questions are analyzed using simple percentage and the hypothesis stated are tested with the Chi-square (X2) statistical tool from the result interpreted, we found out that Merger and Acquisition are viable options for survival of Nigerian companies and that they will ensure a diversified, strong and reliable banking sector. In conclusion, the researcher found out that Merger and Acquisition will strengthen Nigeria banks and will build a banking system, which is strong, competitive and reliable. The researcher recommends that the regulatory authorities should ensure strict adherence to the rules and regulations guiding Mergers and Acquisition to ensure its effectiveness. Also, an examination on the operations of banks should be carried out from time to time to serve as a check against fraudulent and corrupt practices of banks.