Mergers And Acquisitions As A Survival And Growth Strategies On Nigeria Economy (A Study Of Some Selected Banks In Nigeria)

ABSTRACT

The strategic importance of merger and acquisition to the corporate survival and growth of banks operating in Nigeria cannot be overemphasized. Merger and acquisition increases the capital base of banks operating in Nigeria and also ensures that banks are equipped financially and otherwise to withstand pressures arising from operating in a competitive or dynamic business environment. Most companies merge with or acquire other companies in order to form synergy, to gain competitive advantage over others operating in the same market, while others merge with or acquire others banks in order to increase their market coverage and supply chain (Adegbaju, 2007). Banks contribute significantly to the development and sustainability of any economy. As a matter of fact, they are the cornerstones of the economy of a country. The economies of all market-oriented nations depend on the efficient operation of complex and delicately balance systems of money and credit. Banks are an indispensable element in these systems.