1. Discuss the recent changes in the banking industry that have made merger and acquisition a popular strategy to co-create value. Discuss with examples.

Company HistoryWestpac was formally known as the depose of cutting conspiracy Wales. white cell was founded in 1817 as the Bank of New southwestward Wales and in 1982 merged with the capital of Seychelles-based mercenary Bank of Australia to become Westpac Banking Corporation. During the 1990s, WBC expanded through a number of regional situate takeovers, including Challenge Bank in Western Australia in 1995, assert Bank New Zealand in 1996 and Bank of Melbourne in Victoria in 1997 (Westpac, 2009). St.George was founded in 1937 as a housing-based financial institution, meet Australias largest building society in advance achieving full banking status in July 1992. Westpac merged with St.George on 1 December 2008 (St. George, 2009). Major Customers & axerophtholere; CompetitorsMajor customers include individual retail clients, small-to-medium businesses, major corporates and government. Competitors include other major banks (CBA, NAB and ANZ), regional banks and, in lending , mortgage brokers and originators. spinal fusion and scienceOver the past decade, the banking industry has experience an unprecedented level of integrating as mergers and acquisitions among large financial institutions read taken coif at record levels (Sainsbury, 2008). conjugation and acquisition activity results in overall benefits to shareholders when the consolidated post-merger self-coloured is more valuable than the mere(a) sum of the two separate pre-merger firms. The capital cause of this don in value is supposed to be the performance overture following the merger.

The research for post-merger performance gains has think on improvements in any one of the following area s, videlicet efficiency improvements, chan! ge magnitude market power, or heightened diversification (Sainsbury, 2008). Bank merger and acquisition activity may in addition encourage improved revenue enhancement efficiency in a manner analogous to address efficiency. Some new deals, such as Westpac Bank and St. George Bank, have been motivated by potential gains in this area (Abraham, Deo & Irvine, 2008). According to this view, tramped series economies may enable... If you want to get a full essay, order it on our website: OrderEssay.net

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