Mergers and Acquisition Option for Bank Capitalization in Nigeria.
1.1 BACKGROUND OF THE STUDY
A growing phenomenon in modern company management is the different type of changes affecting the structure of these companies, the issue of mergers and acquisition is a relatively recent development in Nigeria.
These structural changes may take the form of scheme of arrangement, amalgamation, take-over, merger and acquisition. These are all commercial term or forms of business combination that indicates operation involving substantial changes in the ownership, construction or capital structure of one or more companies.
Mergers and acquisition have played an important role in the external growth of a number of leading companies all over the world. Undoubtedly, the combination of businesses offers an alternative to internal expansion through the acquisition or development of business property on a piece meal basis. Mergers and Acquisitions is a general term that encompasses all forms of combination of previously separate business entities. It commonly occurs when a corporation and one or more incorporated or unincorporated business are brought together into one accounting entity. The single entity carries on the activities of the previously separate, independent enterprises. This emphasis the single entity and the independence of the combining companies prior to their integration. Although one or more of the combining companies is bound to lose their separate legal identities
In business combinations, bringing their business resources and operations under the control of a single management team brings businesses that were hitherto separate, together into one economic entity. Such controls occurs in the combination of businesses in which
i. One or more companies become subsidiaries of another company. ii. One company transfer its net assets to another, or iii. Each company transfers its net assets to a newly formed company, which exists solely for the purpose.
1.2 STATEMENT OF RESEARCH PROBLEM
There has been continuous
A growing phenomenon in modern company management is the different type of changes affecting the structure of these companies, the issue of mergers and acquisition is a relatively recent development in Nigeria.
These structural changes may take the form of scheme of arrangement, amalgamation, take-over, merger and acquisition. These are all commercial term or forms of business combination that indicates operation involving substantial changes in the ownership, construction or capital structure of one or more companies.
Mergers and acquisition have played an important role in the external growth of a number of leading companies all over the world. Undoubtedly, the combination of businesses offers an alternative to internal expansion through the acquisition or development of business property on a piece meal basis. Mergers and Acquisitions is a general term that encompasses all forms of combination of previously separate business entities. It commonly occurs when a corporation and one or more incorporated or unincorporated business are brought together into one accounting entity. The single entity carries on the activities of the previously separate, independent enterprises. This emphasis the single entity and the independence of the combining companies prior to their integration. Although one or more of the combining companies is bound to lose their separate legal identities
In business combinations, bringing their business resources and operations under the control of a single management team brings businesses that were hitherto separate, together into one economic entity. Such controls occurs in the combination of businesses in which
i. One or more companies become subsidiaries of another company. ii. One company transfer its net assets to another, or iii. Each company transfers its net assets to a newly formed company, which exists solely for the purpose.
1.2 STATEMENT OF RESEARCH PROBLEM
There has been continuous
References: Aigbokhaevholo, M.O. and Ofanson, E.J. (2002): Project work; Imprint Service, Ejodamen Publishers, Lagos. Atufe, F Baridan, D.M. (1994): Research method in administrative science, Belk House P. 135, Port-Harcourt. CBN (2004). Guidelines and incentive on consolidation in Nigerian Banking Industry, Central Bank of Nigeria, August 5th Chisual, M.P David, C. (1983): Success in the element of banking. John Murray Publishers,London. Ezewu, E.E Financial Standard (2004): “Stake holders perspective on N25 Billion Capital Base” August 16th. Hamed, W. (2004): Macro economics impact of new capitalization for bank” Financial Standard. August 16th Ikharehon, J.I Obadan, M. (2004): Mergers, Acquisition and the new minimum capital base 1: Financial Standard, August 30th. Total 40 100 Source: Field Survey, 2010. Total 40 100 Source: Field Survey, 2010 Total 40 100 Source: Field survey, 2010