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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/8525

Title: ASSESSING THE TAKEOVER OF INTERCONTINENTAL BANK GHANA LIMITED BY ACCESS BANK GHANA LIMITED (ABG) AND ITS IMPACT ON THE FINANCIAL PERFORMANCE OF ABG
Authors: BUADEE, THEOPHILUS
Issue Date: 6-Apr-2016
Abstract: The increased globalization has seen businesses enter new markets in order to expand their customer base and compete better within the ever increasing competitive environment. Mergers and acquisitions (Takeovers) has become one major strategy of growth used by these businesses to survive these competitions and ensure growth. This study assessed the takeover of Intercontinental bank Ghana Limited (IBG) by Access Bank Ghana Limited (ABG) as a growth strategy. The research was undertaken as a case study where quantitative research analysis was employed to determine the impact of the takeover on the financial performance of ABG (the predator bank) while assessing the existence of synergy in the takeover process. The final objective was to identify the challenges faced by ABG after acquiring IBG and assess the various strategies employed by management to overcome the challenges. Secondary data (Published financial reports of ABG and IBG) was used for measuring financial performance and synergy. Here, financial ratios were calculated for financial performance measurement while in measuring synergy, t statistics analysis was used to determine the significance difference between the mean of ABG after the merger, and ABG & IBG together where there is no merger. A researcher administered interview was also used to gather primary data for assessing the challenges encountered during the takeover and strategies adopted by management to overcome the challenges. The study found that, the takeover had a positive impact on the financial performance of ABG as majority of the financial ratios calculated gave a positive impact. In terms of synergy, there was a positive evidence of synergy in the takeover processed. This was confirmed with the t statistics results where it was found that the mean of the financial figures for ABG was significantly higher for when there is a merger than when there is no merger. The study recommended that the bank liberalizes its banking philosophies to take advantage of the large retail banking opportunity of IBG.
Description: A Thesis submitted to the Department of Accounting and Finance, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the degree of Master of Business Administration (Finance Option)
URI: http://hdl.handle.net/123456789/8525
Appears in Collections:College of Arts and Social Sciences

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