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Introduction:
Mergers and Acquisitions (abbreviated M&A) refers to the aspect of corporate strategy,
corporate finance and management dealing with the buying, selling, dividing and combining of
different companies and similar entities that can aid, finance, or help an enterprise grow rapidly
in its sector or location of origin or a new field or new location without creating a subsidiary,
other child entity or using a joint venture. Merger is the form of complete consolidation of
business organization. Absorbing one a business enterprise forms a merger of business
enterprises by another unit. Under merger absorbing business enterprises outright the assets and
properties of the absorbed business unit and a single enterprise is created. The absorbed business
unit loses its identity completely merges itself completely. The business is carried on the name of
the absorbing business company.
In the word of Prof. L.H.Hanery, Merger is a form of business organization which is
established by the outright purchase of the properties into a single business unit.
To secure tax advantage by acquiring other firms with accumulated losses which can be
synergistic effects.
To bring about an increase in the price-earnings ratio and market price of the share.
themselves?
What necessary step/procedure needed to be carried out at the time of proposing merger?
Is there necessary of merger for the development of banking/financial sector?
What are the impacts on banking sector after merger?
Whether there is necessary requirement to be fulfilled under prevailing law for merging
the banks/financial institution?
capital adequacy, composition of Non- Performing Assets, financial liquidity & solvency
requirement, evaluation of market performance of stock and risk mitigation practices.
This study can be effective guideline for the policy makers and the persons in the
implementation body. On the other hand this study will help the management of bank/financial
institution and the regulatory body NRB. The study will find strength, weakness, cause of
weakness and suggest ways to mitigate it.