MERGERS & ACQUISTION IN THE BANKING INDUSTRY OF PAKISTAN

Abstract

There are a number of companies who adopt the strategy of Merging with other companies so that they can lower down the market competition in a manner that they can unlock the market potential in a better way. There are a number of advantages of M&A activity in Pakistan as well as, for the banking and financial industry it is regarded as a wild card option when banks need to maintain their liquidity position. From financial industry to fast moving consumer good industry most of the bigger and smaller companies become the part of this strategic move in order to ensure their presence better than ever before.These survival strategies mostly include joining hands with other competitors to minimize the effect of losses that is therefore, they got (Merged). On the other hand, companies buy out their peer competitors this stray is termed as (Acquisition). Turing the pages of history would reveal the fact that at times when growth becomes stagnant and in order to cope up with the market and to make their name alive in the business world companies often adopt these kinds of strategies