Merger and Acquisition as Survival Strategies in Nigeria’s Banking Industry: A Study of Skye Bank Plc and Enterprise Bank Plc

Abstract

The incessant failure of both small and big companies while others manage to stay afloat especially in the banking industry has led to the issue of merger and acquisition. Many companies are of the opinion that to remain in the market, they must merge with other companies while others simply surrender themselves to be acquired by larger firms. It has, therefore become pertinent to investigate the relevance of merger and acquisition as strategy for survival in the banking industry. Survey research design was adopted for the study. A total of 30 staff and customers of Skye Bank Plc and Enterprise Bank Plc respectively were randomly sampled, and stratified along management staff and the customers. A structured questionnaire was used to elicit information. The result revealed a great deal of relevance of merger and acquisition as a strategy for survival in the banking industry. The study is concluded by recommendation that merger procedure should be streamlined in line with economic realities so as to safe the moribund banks from imminent total collapse.