This pdf is a selection from an outofprint volume from the national bureau. Mergers and acquisitions m and a in the corporate world are achieving increasing importance and attention, especially with the advent of intense globalization. Request pdf an analysis of the impact of mergers and acquisitions on commercial banks performance in nigeria mergers and acquisitions. Statutory requirement under companies income tax act cita the cita in section 2912 cap 21, lfn, 2004 provides that no merger, takeover, transfer or restructuring of the trade or business. This study is concerned with the banks in nigeria, such as eco bank plc and access bank their performance from 20092012 and how they can develop a more and better corporate performance, how the introduction of mergers and acquisition has widen unemployment in the past, how a company would grow if they are acquired or merged together. Communal land acquisition and valuation for compensation in nigeria sule, abass iyanda department of estate management, federal university of technology minna, nigeria abstract. Nairaland forum nairaland general career challenges of mergers and acquisition in nigeria 1767 views self employment skills and acquisition trainingempowerment consulting self employment skills and acquisition trainingempowerment consulting investment banking, mergers and acquisition, raising capital 1. By sam bediakoasante in ghana, and in most developing countries, there is no denying the fact that small and mediumscale enterprises play major roles in the growth of their economies. Companies and agencies have found way of bailing themselves out of serious financial distress or build for themselves stronger business entities, through the use of mergers and acquisitions as an effective corporate restructuring tool. The earliest known merger and acquisition that occurred in nigeria was in 1926 between west african soap company ltd and. To find if merger and acquisition will improve the services rendered by nigerian banks. Merger and acquisition laws in uk, uae and qatar brunel.
Section 99 2 of the investment act and rule 228 i of the sec rules requires every company in nigeria, whether private or public, to submit an application for every merger and acquisition to. With the shoring up of the bank capital base from n2billion to n25biliion and with a deadline of 31st december. Impact of merger and acquisition on the financial performance of deposit money banks in nigeria daniya adeiza abdulazeez1, onotu suleiman2 abdulrahaman yahaya3 yahaya m. Kearney also predicted a significant increase in mergers and acquisitions in the oil and gas sector for 2015, and encouraging the companies to. Merger is the combination of two or more businesses that leads to the formation of a new business, but acquisition is the takeover or purchase of one business by other business. The need to carry out this study rose from the challenges faced by nigerian banks despite the reduction of banks from the end of 31st december 25. The global transaction report obtained by sweetcrude indicated. Effects of merger and acquisition on the technological.
Merger is the global business term used achieving the business growth and survival. Against this background this study seeks to examine the performance of the nigeria banking sector in the pre and postmerger and acquisition periods in order to. This study seeks to evaluate the impact of mergers and acquisition as strategic growth options in the west african banking sector. The effect of merger and acquisition on the performance of. Pdf business combinations including mergers and acquisitions are important features of corporate structural changes. Like merger, an amalgamation is the fusion of the businesses of two or more companies under the ownership of one company while retaining the rights and interests of members of the fusing companies. This pdf is a selection from an outofprint volume from the national. Mergers and acquisitions and banks performance in nigeria. Analysis of performance pre and post consolidation of thirteen mega banks in order to consider if there had been. From the above result, it is evident that merger and acquisition have not only static effect on small business lending but also dynamic effect, therefore, given the central position of small businesses in the current government policy on industrialization in nigeria, policy. Like merger, an amalgamation is the fusion of the businesses of two or more companies under the ownership of one company while retaining the rights and interests of members of the. In order to strengthen the competitive and operational capabilities of banks in nigeria with a view towards returning global and public confidence to the nigerian banking sector and the. Olujimi bucknor1 mergers and acquisitions a merger is defined by the investment and securities act of 2007 as any amalgamation of the undertakings or any part of the undertakings or interest of two or more companies or the undertakings or part. Introduction merger and acquisition both are strategic decision and an aspect of corporate strategy.
Nigeria witnessed an unprecedented wave of mergers and acquisitions in its banking sector in the post1995 and 2009 periods as a result of regulatory mandates issued by the central bank of. The curse of ghanaian businesses now are mergers and. Merger, acquisition in nigeria, other african nations to. It is a unique field in the nigeria legal system, and this is connected to the limited expertise in this area. Communal land acquisition and valuation for compensation in nigeria sule, abass iyanda department of estate management, federal university of technology minna, nigeria abstract it is debatable that the nigerian land use act of 1978 has not absolutely transferred ownership of land to the governor of states in nigeria.
Banking is in the midst of change that has arisen due to economic depression. Folake eliasadebowale is a corporate partner and head of the firms private equity and oil and gas teams. Communal land acquisition and valuation for compensation in. An overview of mergers and acquisitions under nigerian law omotayo akinrinwa abstract this essay seeks to explore the legal framework governing the operation or activities of mergers and acquisitions in nigeria. In nigeria, merger and acquisitions remain few and unpopular. The period was characterized by financial deregulation, the global economic crisis, and bank restructuring programs. The legal framework of merger and acquisition in nigeria. Statutory requirement under companies income tax act cita the cita in section 2912 cap 21, lfn, 2004 provides that no merger, takeover, transfer or restructuring of the trade or. The need to carry out this study arose from the challenges faced by nigerian banks despite the. This study examines the impacts of merger on deposit money banks performance in nigeria between 2000 and 2009. An overview of mergers and acquisitions under nigerian. It was discovered that merger and acquisition can be used as an alternative strategy for business survival in nigeria. In order to strengthen the competitive and operational capabilities of banks in nigeria with a view towards returning global and public confidence to the nigerian banking sector and the economy in general, the central bank of nigeria instituted a banking reform in 2004, which saw most of the then existing 89 banks merging with each other.
Merger is also helpful for businesses in terms of solvency. Our mergers and acquisitions teams advise and transact for corporate buyers and private equity. How merger, acquisition options strengthen nigerian. It is only after this process that we can determine the tactics to achieve the.
Since then there have been increased discussion and awareness on merger and acquisitions in nigeria. The system faces enormous challenges which if not address urgently, could snowball into a crisis in the near future to, onalapo, and ajala20 described the recent outbreak of bank mergers. If the merger is approved by the sec, the parties can apply to the court nigerias federal high court for the merger to be sanctioned after which, the merger will become binding on the companies in question. Communal land acquisition and valuation for compensation.
Impact of merger and acquisition on the financial performance. Effects of merger and acquisition on the technological performance of nigerian business organizations owomoyela, s. To find if bank merger succeeded in curbing bank failure in nigeria. Mergers and acquisitions services in lagos, nigeria.
Kearney also predicted a significant increase in mergers and acquisitions in the oil and gas sector for 2015, and encouraging the companies to take. An analysis of the impact of mergers and acquisitions on. Merger is the combination of two businesses that leads toward a new business, but acquisition is the takeover or purchase of one business by other business. Pdf merger and acquisition as survival and sustainable. The effect of merger and acquisition on the performance of banks in nigeria ajayi lawrence boboye obisesan oluwaseun grace department of banking and finance, faculty of. The study was designed to examine mergers and acquisitions in the banking industry in nigeria.
Nigeria witnessed an unprecedented wave of mergers and acquisitions in its banking sector in the post1995 and 2009 periods as a result of regulatory mandates issued by the central bank of nigeria, aimed at strengthening the capital base of nigerian banks. If the merger is approved by the sec, the parties can apply to the court nigerias federal high court for the merger to be sanctioned after which, the merger will become binding on the. The effect of merger and acquisition on the performance of banks in nigeria ajayi lawrence boboye obisesan oluwaseun grace department of banking and finance, faculty of management sciences, ekiti state university, adoekiti, nigeria. Nairaland forum nairaland general career challenges of mergers and acquisition in nigeria 1767 views self employment skills and acquisition trainingempowerment consulting self. Mergers and acquisitions in the nigerian banking industry abstractthe study was designed to examine mergers and acquisitions in nigrerian banking industry. From the above result, it is evident that merger and acquisition have not only static effect on small business lending but also dynamic effect, therefore, given the central position of small. Mechanics of mergers, acquisitions, workshop, 2005. The court may by the order sanctioning the merger or subsequent order make provision for any or all. Laws that govern merger and acquisition in nigeria. An overview of mergers and acquisitions under nigerian law omotayo akinrinwa abstract this essay seeks to explore the legal framework governing the operation or activities of. The impact of mergers and acquisition on the financial. Umoren and olokoyo 2007 studied merger and acquisition in nigeria. Section 99 2 of the investment act and rule 228 i of the sec rules requires every company in nigeria, whether private or public, to submit an application for every merger and acquisition to the securities and exchange commission sec.
Merger is the corporate action where two companies decide to combine their. Against this background this study seeks to examine the performance of the nigeria banking sector in the pre and post merger and acquisition periods in order to ascertain whether or not the exercise led to significant difference in the performance of the banking sector between the periods. Analysis of performance pre and post consolidation of thirteen mega banks in order to consider if there had been improvements. Merger is the combination of two businesses that leads toward a. Pdf corporate business valuation for mergers and acquisitions. Under nigerian law, contracts of employment are personal in nature. Brockington 2005 defines a merger which is consonance with afolabi 2011as the result of a process whereby two or more. It is only after this process that we can determine the tactics to achieve the desired outcomes. The adoption of merger and acquisition offers many benefits to the companies which includes management expertise, risk diversification, stock exchange quotation, increase market share, desire for growth, technological drive, profit. The key principle behind buying a company is to create shareholder value over and above that of the sum of the two companies.
The principal law that governs the merger and acquisition in nigeria is the investment and securities act isa 2007. Mergers and acquisitions in ghana essay 20936 words. In 2014 alone, nigeria recorded 24 mergers and acquisition, this was driven by the continued divestment by banks from noncore financial services following the repeal of the universal banking regime in 2010 by cbn, commercial banks were directed to divest from their nonbanking activities or adopt a holding company structure in the event that. Law and practice of mergers and acquisition in nigeria by. Mergers and acquisitions are commonplace in developing. Doc mergers and acquisitions in nigeria chukwuemeka. It is against this backdrop that this article made a comparative analysis of the impact of mergers and acquisition on financial efficiency of banks in nigeria. How merger, acquisition options strengthen nigerian content. Merger and acquisition as consolidation instruments for correcting the deficiencies in the banking sector a case of united bank for africa plc oluwaremi.
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