The mergereffect of the Amalgamation of Guinness Ghana Ltd (GGL) and Ghana Breweries Ltd (GBL)

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The study is about the effect of the merger on the employee, shareholders and other stakeholders of GGL and GBL. Mergers and acquisitions are popular strategic business means that companies adopt to grow and achieve economies of scope and scale. However, approximately two out of every three M&As fail to achieve such intended objectives, which are mostly the basis for the alliance. The purpose of this study is to assess the performance of the two entities, GGL and GBL in terms of finances, shareholders' benefits and employees' welfare before the merger. These are then compared with the present company's (GGBL) performance to ascertain the validity or necessity for the merger. The aim is to collect financial data of the two companies before the merger for the financial analysis. The turnovers, profitability, dividend payouts, return on equity, net profit margin, earnings per share, dividend per share and sustainability growth rate of the two entities five years before the merger were critically analysed and presented graphically to portray trends of performance. The above indicators were then compared with the three- year performance of the amalgamated company, GGBL. The study also developed questionnaire to solicit employees' perception on the merger, three years after the alliance. The welfare of the employees in terms of safety, remuneration, working conditions and job security were gathered for the study. The study after all these exercises was able to deduce the effect of the merger on the stakeholders of the new entity. General deductions regarding the benefits and demerits to the stakeholders in the merged company have been made  
A thesis submitted to the Graduate School of Business, Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfilment of the requirement of Master of Business Administration (Banking and Finance), 2008