A Report On Mergers And Acquisitions

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Mergers and Acquisitions have always been considered as a …………………….. and ever since the first merger in Nigeria in 1980, Merger and Acquisitions have occurred in most sectors of Nigerias economy. In 2004, the Central Bank of Nigeria in fulfillment of its mandate to Promote and maintain of monetary stability and a sound and efficient financial system in Nigeria rolled out a 13 point rolled out a 13-point reform agenda aimed at consolidating the banking sector and preventing the occurrence of systemic distress. The most important points of this reform package were first that, the minimum capitalization of banks be increased from 2 billion naira to 25 billion naira before the 31st of December 2005 and second, that this aim was to be achieved…show more content…
For this reason, many countries are moving towards consolidating their banking system and Nigeria cannot be an exception.”(pg 10) The CBN however noted that there would be some challenges to this programme and they are enumerated below: o Ensuring that provision of adequate safety nets and compensation packages are made by the merging banks to meliorate for potential job losses arising from mergers; o Appropriate mechanisms for protecting possible disenfranchisement of small depositors who may not be elcomed by the emerging mega-banks; o The regulatory authorities, especially SEC, would need to be empowered to be active in the market to prevent hreat to competitive market and monopolistic tendencies of mega-banks from consolidation. Also, the NDIC and CBN would need to constantly monitor the activities and performance of the emerging mega-banks to prevent bank distress and failures. (pg 14)
To address some of the issues highlighted by the CBN above, the Investment and Securities Act 2007 was enacted to replace the Investment and Securities Act 1999 and the some of the sections of the Companies and Allied Matters Act applicable to Mergers and Acquisitions. The Investment and Securities Act has however been criticized for being very
However in 2010, due to the global financial crisis and
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