This study examined mergers and acquisition as a means of survival in the Nigeria banking industry. This became imperative because the most Nigerian banks are becoming personalized in ownership and management structure which made the banks incapable to finance large scale and long term projects due to limited liquidity at their disposal. The sector was characterized with import financing; there was loss of public confidence due to fear of liquidation, customer dissatisfaction on banking services as well as some obnoxious, unprofessional and other sharp practices within the industry. In an attempt to achieve the broad objective of the study, three hypotheses was raised in the study for validation using secondary data covering the period of 2009 to 2015 collected from the Annual Report and Statement of Financial Position of Access bank Nigeria Plc, Eco Bank Nigeria Plc and Stanbic Bank Nigeria Plc which are the sampled commercial banks for the study. The student t-test was used in the analysis and the result was facilitated using the statistical package for social and sciences (SPSS 20.0). The result of the analysis at 5% level of significance shows that bank’ mergers and acquisitions exercise has no significant impact on the survival of the selected banks. This arose from the fact that, the calculated t-values is less than the t-critical value at 5% level of significance; hence, there is no significant difference between the pre and post mergers and acquisitions periods in term of gross earnings, profit after tax and net assets. However, the post mergers and acquisitions periods have a higher performance in gross earnings; profit after tax and net assets has a better performance than the pre mergers and acquisitions periods. Based on the aforementioned, the null hypotheses are rejected. Among others, the study recommended that banks should be more aggressive in financial products marketing to increase financial efficiency for an improved financial position in term of gross earnings, profit after tax and net assets in order to reap the benefit of post mergers and acquisitions bid in the Nigerian banking sector.
TABLE OF CONTENTS
CHAPTER ONE – INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Scope of the Study
1.7 Justification of the Study
1.8 Operational Definition of Terms
CHAPTER TWO – LITERATURE REVIEW
2.1 Conceptual Framework
2.1.1 Definition of Merger
2.1.2 Acquisition
2.1.3 The Concept of Merger & Acquisition
2.1.5 Types of Merger and Acquisition
2.1.6 Reasons for Mergers and Acquisitions
2.1.7 Benefit of Merger and Aquisition
2.1.8 The Reason for Mergers and Acquisitions in Nigeria
2.1.9 Trend of banks recapitalization in Nigeria
2.2 Theoretical Framework
2.2.1 Theory of Synergy
2.2.2 Concentration Theory
2.2.3 Pro-concentration theory
2.2.3 Pro-deconcentration theory
2.2.4 “Eat or be Eaten” theory of mergers
2.3 Empirical Review
CHAPTER THREE – RESEARCH METHODOLOGY
3.1 Research Design
3.2 Study Area
3.3 Population of the Study
3.4 Sample Size and Sampling method
3.5 Data Type and Instrument for Collecting data
3.6 Validity and reliability of research Instrument
3.7 Model Specification
3.8 Method of Data Analysis
CHAPTER FOUR – PRESENTATION AND ANALYSIS OF DATA
4.1 Data Presentation
4.2 Interpretation of Results
4.3 Implication of Findings
CHAPTER FIVE – DISCUSSION, CONCLUSION, AND RECOMMENDATIONS
5.1 Discussion of Findings
5.2 Conclusion
5.3 Recommendations
REFRENCES
APPENDIX
