MERGERS AND ACQUISITIONS IN THE FINANCIAL SERVICES INDUSTRY- A FOCUS ON BANK MERGERS

M.M.  Rahman; M.  Rahman

doi:10.53808/KUS.2001.3.2.0115-mb

Authors

M.M. Rahman Business Administration Discipline, School of Business, Khulna University, Khulna 9208, Bangladesh
M. Rahman Business Administration Discipline, School of Business, Khulna University, Khulna 9208, Bangladesh

DOI:

https://doi.org/10.53808/KUS.2001.3.2.0115-mb

Keywords:

Merger; Acquisition; Competition; Consolidation; Diversification

Abstract

Mergers and acquisitions (M and A) among financial services institutions have been somewhat of a phenomenon over the last decade, and even more so over the last four to five years. Each week in the USA, the press has been rife with announcement of merger and acquisition plans by large corporations. This merger-mania is not onlysweeping throughout a country in epic proportions, but is now undertaken on a global scale as corporations increase their efforts to become more dominant players in a competitive market place. At the international level, this trend continues, as can be seen by huge deal makings, such as the bank of Tokyo and Mitsubishi of Japan merger to become the largest banking institution in the world. In Switzerland, Bank of Switzerland and Union Bank of Switzerland have merged to become the second largest bank in the world. Here in this paper, an attempt has been made to explore the changing
pattern of competition in financial services industry in the USA. However, the paper also discusses the important issues in mergers and acquisitions in general. The study is significant as today, we see that companies are becoming larger in order to compete with each other. A clear understanding of the issues will help organizations to survive in the competitive world. So, the study has got importance both at managerial and academic level.

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