International Journals of Marketing and Technology
  • Year: 2013
  • Volume: 3
  • Issue: 1

Strategic mergers and acquisitions: A survival and growth option used by banks in pre and post banking sector reforms in Nigeria

  • Author:
  • Oluwasanya Adewale Tony
  • Total Page Count: 19
  • Page Number: 20 to 38

*HOD, Business Administration and Management, DS Adegbenro ICT Polytechnic, Eruku, Itori-Ewekoro, Ogun State, Nigeria

Director, Centre for Manpower Development and Entrepreneurship, DS Adegbenro ICT Polytechnic, Eruku, Itori-Ewekoro, Ogun State, Nigeria

Online published on 30 September, 2013.

Abstract

On 31st December, 2005, the eighteen-month deadline for recapitalization given by the Central bank to operators in the Nigerian banking industry expired. From the following day only banks who met the required minimum of 25 billion shareholders’ funds retained their license to continue operation. The quest of many banks to remain operation after this deadline forced many operators within the industry to embrace merger and acquisition as an alternative to complete winding up and liquidation. The objective of this paper is to examine the pre and post banking sector reforms mergers and acquisitions exercise by banks and the benefits derivable from thestrategic alliances. It also considers the vitiating elements inherent and attributable to these strategic alliances.

Keywords

Mergers, Strategic Alliance, Acquisitions, Takeover, Reforms, Consolidation