Mergers and Acquisitions in Ghana

UNIVERSITY OF CAPE COAST

THE IMPACT OF MERGERS AND ACQUISITIONS ON THE
CORPORATE FINANCIAL PERFORMANCE OF GUINNESS GHANA
BREWERIES LIMITED

BY
STEPHEN SANYE BATOGBEE SEIDU

A DISSERTATION SUBMITTED TO THE DEPARTMENT OF
ACCOUNTING AND FINANCE OF THE SCHOOL OF BUSINESS OF
THE UNIVERSITY OF CAPE COAST IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE AWARD OF MASTER OF BUSINESS
ADMINISTRATION

AUGUST 2008

UNIVERSITY OF CAPE COAST

THE IMPACT OF MERGERS AND ACQUISITIONS ON THE
CORPORATE FINANCIAL PERFORMANCE OF GUINNESS GHANA
BREWERIES LIMITED

STEPHEN SANYE BATOGBEE SEIDU

AUGUST 2009

DECLARATION

Candidate’s declaration
I hereby declare that this dissertation is the result of my own original research and that no part of it has been submitted for another degree in this university or elsewhere. Candidate’s signature………………………

Date ……………………………

Name:

Supervisor’s declaration
I hereby declare that the preparation and presentation of this dissertation were supervised in accordance with the guidelines on supervision of dissertations laid down by University of Cape Coast. Supervisor’s signature …………………………………… Date ………………………………………………….. Name…………………………………………………………………………………………………

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ABSTRACT
Mergers and acquisitions are a relatively new but fast growing phenomenon in the Ghanaian economy as a response to increasing competition, emanating from the changing business environment. However, because they are relatively new in the country, mergers and acquisitions are not well understood in
Ghana.
This study examines the impact of mergers and acquisitions on the acquiring company’s corporate financial performance, within the Ghanaian economy, using Guinness Ghana Breweries Limited as case study. The issue was investigated using performance measure based on the company’s annual reports.
The results of the study show that the accounting performance declined after the merger. There has

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