ABSTRACT
This study was designed to study the effect of Merger and Acquisition in the Bank-ing Industry in Nigeria with special reference to United Bank of Africa, Plc.
The research work tried to reveal whether the introduction of merger and acquisi-tion can improve the banking industry profitability and provide an engine for eco-nomic growth and sustainable development.
The thesis will review the background of the Nigerian Banking sector since incep-tion as well as, examine the efficacy of merger and acquisition of banks in Nigeria.
Moreover, questionnaire and personal observation would be adopted as part of methodology necessary to retrieved required data from United Bank Of Africa, Plc. Necessary literatures were also reviewed to complement the thesis while the main body would focus on the effect of merger and acquisition to United Bank Of Africa, Plc. Recommendation and conclusion are the last write-up of the whole study; it would be recommended that the government and regulatory authorities devise method of monitoring the activities of merging banks and stands as checks and balances to non-compliance of their laid down regulations.
TABLE OF CONTENTS
Thesis abstract
Abbreviations
1 INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Research Objective
1.4 Significance of the Study
1.5 Structure of the Thesis
2 REVIEW OF RELATED LITERATURE
2.1 Introduction
2.2 Theoretical Framework for Merger and Acquisition
2.3 Types of Merger
2.4 Reasons and Problem for Merger and Acquisition
3 IMPACTS OF MERGER AND ACQUISITION TO NIGERIA ECONOMY
3.1 Legal Requirement for Merger and Acquisition in Nigeria
3.2 Procedures for Merger in Nigeria
3.3 Reason for Regulating Merger and Acquisition Transaction
4 RESEARCH METHODOLOGY
4.1 Introduction
4.2 Research Design
4.3 Sources and Method of Data Collection
4.4 Study Population
4.5 Research Instrument
4.6 Limitation of the Research work
5 PRESENTATION AND DATA ANALYSIS
5.1 Introduction
5.2 Data Analysis Procedure
6 SUMMARYS, CONCLUSIONS AND RECOMMENDATIONS
6.1 Summary of Findings
6.2 Conclusions
6.3 Recommendation
BIBLIOGRAPHY
APPENDICES
1 INTRODUCTION
The banking sectors is crucial to the survival of any economy and in order for the banking industry to achieve its objectives, the industry must be stable, safe and sound.
In Nigeria, the rapid increase in the number of bank failure has reached an un-precedented level and as a result, the regulatory authorities have adopted meas-ure aimed at ensuring safely and soundness of the banking industry. Such meas-ure includes: Holding actions, assumption of management control as well as out-right liquidation among others.
Merger and Acquisition strategies are gaining more popularity because of the globalization, deregulation of multiple industries in many different countries, and favorable legislation, the number and size of domestic and cross-border merger and acquisitions has increased significantly. (Hitti , Ireland , and Hoskisson , 2005, 225.)
1.1 Background of the Study
The restructuring of the Nigeria economy since 1986 has increased the competi-tiveness of the Nigeria economy since the principal trust of the structural adjust-ment program (SAP) was the deregulation of Nigeria financial system with the fol-lowing key measure licensing of new financial institution including the finance companies, mortgage banks, community bank and peoples bank, deregulation of pricing of financial services through interest rate became regulated. The regulatory authorities are the central bank of Nigeria (CBN) and Nigeria deposit insurance corporation (N.D.I.C).
The Nigeria financial system approach for resolving the distress of banks suggest-ed by both official and private circle is “MERGER AND ACQUISITION”.
Several strategies are available in most of the developing countries. The corporate world is usually opened to an investor for raising capital in the capital market. One often, which has been found most useful in many developed economics and grad-ually gaining ground in many developing nations, is through merger and Acquisi-tion.
A merger is defined by the companies and allied matters decree 1990 as “any amalgamation of the undertaking of any part of the undertakings or interest of two or more companies or the undertakings or part of the undertaking of one or more company’s bodies corporate”
An acquisition is the buying over of a company by the payment of cash to its shareholders by another company with the target company still continuing its ex-istence but as a subsidiary of the buying company which becomes the acquired company’s holding company.
According to Ade Oyedijo (2004, 167) A merger occurs when two companies un-der different ownerships and management combines together to become a single enterprise.
Hence, Nancy Hubbard (2001) argued that there are psychological differences between acquisitions and merger as the latter involve two partners of relatively equal size and power and a genuine attempt is made to combine the two entities into a culturally new one...
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