Mergers and Acquisitions: Effects on Shareholders Value Evidence from Nigeria

During the last decade, Nigeria has witnessed significant growth in corporate mergers and acquisitions. Reasons behind mergers and acquisitions are to syntheses and enhance the corporate tenacity (synergy). In the existing study, an attempt has been on the study of the impact of mergers and acquisitions on the shareholders wealth. The study specifically on companies which have undergone merger during the period 2001 to 2010. There are about 20 consolidated banking industries in Nigeria during the above mentioned period and we have considered all for the study to examine pre and post merger and acquisition performance of the specified banks. The result suggested that shareholders value creation is highly dependent on operating expenses, profit margin, return on Capital Employed (TOCE) and Expenses ratio. The inter-company and intra-industry analysis results indicate that there is marginal positive impact of mergers and acquisitions on shareholders value creation.