ABSTRACT

The study was designed to examine Mergers and Acquisitions in the Banking Industry in Nigeria using United Bank for Africa as a case study. The need to carry out this study arose from the challenges faced by Nigerian banks despite the reduction of banks from 89-25 at the end of 31st December 2005.These current challenges faced by banks in the country have made researchers to question the efficacy of the consolidation of banks in Nigeria. Personal interviews were conducted; literatures, journals etc. were reviewed. One hundred and thirty (130) samples were selected for the study from the case study bank from Lagos and Uyo branches. The research design used was a survey. Questionnaire responses were the main instrument of primary data. Their opinions were analyzed in tabular form using the simple percentage; two Hypotheses were formulated and tested using the chi square statistic at ninety five percent (95%) level of confidence level. The tests and analyses revealed that the consolidation to meet the N25 billion Capital base had positive impact on the bank profit and the capital base of the case study bank immediately after the Merger, but in subsequent years, the Profit and the Capital base became unstable. The study recommended that Incentives should be given by Government to banks that will encourage Mergers and Acquisitions to enable such banks that cannot meet capital adequacy to stay afloat.

TABLE OF CONTENT

Cover page      -           -           -           -           -           -           -           -           -           i

Title page          -            -                    -           -           -           -           -           -           ii

Declaration         -            -                - -           -           -           -           -           -           iii

Certification        -           -                -                            -        -           -           -           iv

Dedication           -           -             -                              -        -           -           -           v       Acknowledgements         -             -     -                                                  -                            -        -           -           vi

Abstract          -           -           -           -           -           -           -           -           -           vii

Table of contents        -           -           -           -           -           -           -           -           viii

List of Tables -         -             -          -           -           -           -           -           -           xii                                           

CHAPTER ONE – INTRODUCTION

1.0        Background to the Study              -             -              -             -      -                  1

1.1        Statement of  the Problem             -              -             -            -       -                2     

1.2        Objectives of the Study          -              -             -            -             -                 2    

1.3        Research Questions   -             -              -             -            -             -                3  

1.4        Research Hypotheses             -              -             -            -             -                  3  

1.5        Significance of the Study       -              -             -            -             -                 3           

1.6        Scope and Limitations of the Study      -             -            -             -                 4

1.7           Definition of Terms               -              -             -            -             -               5

1.8         Organization of the Study      -              -             -            -             -     -      7      

1.9         Brief Historical Background of the UBA Group -      -         -      -               8

CHAPTER TWO – REVIEW OF RELATED LITERATURE

2.0    Introduction           -              -              -             -            -             -         -        10  

2.1   History of Mergers and Acquisitions in Nigeria       -            -            -              14           

2.2    Forms of Mergers            -            -            -           -            -      -           -           15       

2.3    Reasons for Mergers           -          -       -           -           -           -           -           16

2.4    Benefits of Mergers and Acquisitions -            -            -            -         -           18

2.5   Why Mergers and Acquisitions Fail            -            -            -    -           -           19

2.6   Procedure Necessary for Merger and Acquisition           -            -           -        20

2.7  Merger Analysis   -           -           -           -           -           -           -           -           22

2.7.1  The Benefits of Merger to Acquiring Firm         -               -            -               24          

2.7.2  Discounted Cash flow (DCF) Evaluation of Merger            -                -         26                         2.8      Financing a Merger -     -      -         -       -       -        -        -        -         -        28

2.9    Merger Negotiations: Significance of Price Per Earning (P/E) Ratio       -        30                        

2.10    Tender Offer     -            -            -          -            -            -      -           -           30

2.10.1Protection of Minority Shareholders Interest               -            -            -        32  

2.11    Method of Accounting for Mergers and Acquisitions     -      -           -           33

2.12    Merger Regulation in Nigeria              -           -           -           -           -           36

2.13   Impact of Merger and Acquisition on the Performance of

            Commercial Banks      -           -           -           -           -           -           -           43

2.14    The Impact of the Reform on the Capital Base and Profitability

            of the Merged Bank    -           -           -           -           -           -           -           44

2.15     About the Merger between Standard Trust Bank Plc. and United Bank Plc.            53

CHAPTER THREE – RESEARCH METHODOLOGY

3.0 Introduction       -              -              -             -            -           &nbs

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