Effects on Mergers and Acquisitions on Bank Growth

Powerful Essays
EFFECTS OF MERGERS AND ACQUISITIONS ON BUSINESS GROWTH: CASE STUDY OF SOCIÉTÉ GÉNÉRALE - SOCIAL SECURITY BANK LTD (SG-SSB)

CHAPTER ONE 1.0 INTRODUCTION AND BACKGROUND TO THE STUDY
Chief Executive Officers and the Board of Directors of most businesses often think about the growth of their businesses. The reason is that when businesses grow, they yield the best returns other things being equal. Mergers and acquisitions is one of the favored methods used to achieve growth and increase shareholders value.
According to Angwin, (2001) mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly. Although they are used as though they were synonymous, the terms mergers and acquisitions mean slightly different things. A merger happens when two firms, often about the same size, agrees to go forward as a single new company rather than remain separately owned and operated. (Cartwright, S. and Cooper, C. 1990) .Acquisitions occurs when one company takes over another and clearly established itself as the new owner.
SG-SSB is a bank based in Ghana. The name "SG-SSB" stands for Société Générale Social Security Bank. The bank is based in Accra. According to its website it is the 4th largest bank in Ghana and has 37 branches in Ghana. The bank was first known as Social Security Bank but later rebranded its name to Société Générale Social Security Bank after Société Générale; one of the world’s largest banks acquired controlling shares in the bank. The mission of the bank is to create the preferred banking institution, which employs professionalism, team work and innovation to provide quality products and services that best satisfy the needs of its customers.
SG-SSB Ltd has been one of the leading banks in Ghana operating



References: Albizzatti, N. and Sias, D. 2004. New Tricks for the Old Deal Pro. Mergers and Acquisitions: The Dealmaker’s Journal, 39 (6): 28-35. Angwin, D Balmer, J. M. T. and Dinnie, K. 1999. Corporate identity and corporate communications: the antidote to merger madness. Corporate Communications, 4 (4): 182-197. Beitel P, Schiereck D, Wahrenburg M (2004) explaining M& A success in European banks Carey, D. 2000. A CEO roundtable on making mergers succeed. Harvard Business Review, 78 (3): 145-154. Cartwright, S Chanmugan, R., Shill, W., Mann, D., Ficery, K. and Pursche, B. 2005. The intelligent clean room: ensuring value capture in mergers and acquisitions, The Journal of Business Strategy, 26 (3):43-49. Coulthard, M., Howell, A Cullinan, G. and Holland, T. 2003. Strategic Due Diligence. USA: Bloomberg Press. Datta, D Gadiesh, O. and Ormiston, C. (2002). Six rationales to guide merger success. Strategy and Leadership Hagendorff J, Keasey K (2009) Post- merger strategy and performance; evidence from the US and European banking industries, Kane EJ (2000) Incentives for banking megamergers.

You May Also Find These Documents Helpful

  • Powerful Essays

    PROJECT REPORT ON “MERGERS AND ACQUISITIONS OF BANKS” EXECUTIVE SUMMARY Mergers and acquisitions are one of the popular topics in business today, since they characterize the new economy: pressure of global competition, development of technology and disappearance of country boundaries. The purpose of this project is to study how mergers and acquisitions affect the share prices of the acquirer bank. We have taken up seven banks as a part of our case study analysis and have made an attempt to study…

    • 8922 Words
    • 36 Pages
    Powerful Essays
  • Powerful Essays

    The Performances of Commercial Banks in Post-Consolidation Period in Nigeria: An Empirical Review R.O.C. Somoye Associate Professor, Olabisi Onabanjo University, Ago-Iwoye, Nigeria P.O.Box 1104, Ijebu-Ode, Ogun State, Nigeria Tel: 2348033335688 E-mail: olukayodesomoye@hotmail.com; kayodesomoye@yahoo.com Abstract The current credit crisis and the transatlantic mortgage financial turmoil have questioned the effectiveness of bank consolidation programme as a remedy for financial stability and…

    • 2245 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    1. Case Name: Unity Bank- Realizing value from an M&A integration 2. Problem Statement The primary question of the case is: Unity Bank has acquired Delta to realize its dream of becoming the World No 1 provider of share registry services. The primary problem is “How to successfully integrate Unity Bank and Delta within the specified timeframe and simultaneously achieve the Target savings?” The secondary question of the case is: The integration posed multiple challenges but it was critical…

    • 1841 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Mergers And Acquisitions

    • 615 Words
    • 2 Pages

    Mergers and acquisitions DEFINITION: Merger is defined as a combination of two or more companies into a single company where one survives and others lose their corporate existence.The survivor acquires all the assets as well as the liabilities of the merged company or companies . Generally,the survivor company is the buyer ,which retains its identity and the extinguishing company is the seller. Merger is also defined as amalgamation Mergers and acquisitions in banking sector have become familiar…

    • 615 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Mergers & Acquisitions

    • 3891 Words
    • 16 Pages

    Mergers and Acquisitions in Global Scenario By Shahwar Gul In the post- liberalization era, the demand for intense growth and development in business has paved the way for the companies to undergo the process of amalgamation, takeover, reconstruction and re-organization. Mergers and acquisitions have become imperative tools in structuring a new generation of organizations with the clout and resources to withstand and compete on a global basis. The field of M&A has undergone drastic and dramatic…

    • 3891 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    Mergers and Acquisitions

    • 12265 Words
    • 50 Pages

    NINE PRESENTATION TOPIC: MERGERS AND ACQUISITIONS, MODERN THEORY OF CORPORATE CONTROL COURSE INSTRUCTOR: MIRIE MWANGI GROUP MEMBERS: STUDENT | REGISTRATION NUMBER | BANCY WANGUI | D61/60453/2011 | ISAAC NYAMORA | D61/66960/2011 | JACQUELYNE M. ODERO | D61/62818/2010 | JOSEPHINE M. ODERA | D61/63410/2010 | MATTHEWS WAUYE | D61/63904/2010 | SAMUEL GATHUA | D61/64121/2011 | TIM SILOMA | D61/60464/2011 | ABSTRACT In today’s globalised economy, mergers and acquisitions (M&A) are being increasingly…

    • 12265 Words
    • 50 Pages
    Powerful Essays
  • Powerful Essays

    Mergers & Acquisition

    • 14304 Words
    • 58 Pages

    Introduction Mergers and acquisitions (M&A) and corporate restructuring are a big part of the corporate finance world. Every day, Wall Street investment bankers arrange M&A transactions, which bring individual companies to collectively form larger ones. When they 're not creating big companies from smaller ones, corporate finance deals do the reverse…

    • 14304 Words
    • 58 Pages
    Powerful Essays
  • Powerful Essays

    Mergers and Acquisitions

    • 11574 Words
    • 47 Pages

    MERGER & ACQUISITION IN INDIA MERGER & ACQUISITION IN INDIA Page 1 1. 2.…

    • 11574 Words
    • 47 Pages
    Powerful Essays
  • Best Essays

    Mergers and Acquisition

    • 4141 Words
    • 17 Pages

    Do Mergers and Acquisitions always bring desired results? Individual Assignment [pic] [pic] [pic] Student Name: Mandeep Kaur (10211855) Module Leader: Simeon Scott Course: MA- IBM Introduction: For my research topic I have chosen this topic to analyse and to investigate about the mergers and acquisitions of organisations. Do these mergers and acquisitions…

    • 4141 Words
    • 17 Pages
    Best Essays
  • Good Essays

    Merger & Acquisition

    • 2956 Words
    • 10 Pages

    What is Merger and Acquisition (M&A)? Acquisitions and mergers mostly happen when a company wants to expand in a new territory, but does not have enough expertise to do business over there, or when a company wants to expand into a new business and does not have technologies to produce that new kind of product or service. Merger and acquisition doesn’t require any sort of subsidiary or joint venture. It is a decision taken by the top management of the company meaning it is a corporate level strategy…

    • 2956 Words
    • 10 Pages
    Good Essays