Abstract:
This research focuses on the impact of mergers and acquisitions of commercial banks in
Pakistan. Mergers and Acquisitions (M&A) is a process in which the whole financial
structure or one part of the business is changed. This is due to various factors
like synergy, economies of scale, market share, competition is limited, diversification etc.
even though it has benefited but history has seen many failures of mergers. Unsuccessful
mergers can be of much reason.
The research is based on the literature available on the secondary research. The report
followed case studies of mergers between which were successful FAYSAL BANK and
RBS and which went wrong between STANDARD CHARTERED and UNION BANK
to learn about the various reasons why mergers turn out to be successful and
unsuccessful. I also conducted primary research where I surveyed respondents who were
employees of companies which had recently undergone mergers or acquisition. This gave
me important insights about what the employees reactions are how they perceive this act.
I have also done an interview with one of the manager of Faysal bank.
This thesis report consists of five chapters. This problem statement is Do mergers and
acquisition have a positive impact on the banking sector of Pakistan? What are the
benefits and disadvantages of mergers and acquisitions? Chapter 1 gives us an
introduction about mergers and acquisitions. Its pros and cons, present status. Chapter 2
tells us about the research design and methods and methods used for research. Chapter 3
has foreign and local reviews relating to the topic. It also covers a case study of the two
banks that have undergone mergers and acquisition recently. It also tells us about
employees’ reactions and how management can retain the best and experience
employees. Chapter 4 contains the analysis of the questionnaire and finally chapter five
gives us the summary of the findings.
