A  M&A process perspective in the banking sector

Liviu  Warter; Iulian  Warter

Published : 2015-06-14

Vol. 3 No. 2 (2015)

A M&A process perspective in the banking sector

Liviu Warter

Iulian Warter

Abstract

The banking sector turmoil has produced important structural changes, and generated significant opportunities for banking institutions to initiate mergers and acquisitions. Notwithstanding, many of them fail to anticipate strategic aspects that could affect the outcomes of such transactions. This is a well-established fact, but the main reasons for it are less comprehensible. M&As within the banking sector are not a completely new phenomenon but the new wave of M&As in this sector has brought a lot of attention to these deals. For example, in 2014, CIT Group Inc’s acquisition of OneW-est’s($21.8 billion in assets), and BB&T Corp’s acquisition of Susquehanna Bancshares Inc’s ($18.6 billion in assets). This paper contributes to the man-agement literature by analyzing the motives behind cross-border mergers and acquisitions (M&As) for international banks in order to get an under-standing of why they find it necessary to merge and/or take over other banks and the key reasons whereby banks’ M&As can go wrong.

Keywords:

mergers and acquisitions (M&As), M&A performance, banking industry

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Warter, L. ., & Warter, I. . (2015). A M&A process perspective in the banking sector. Forum Scientiae Oeconomia, 3(2), 105–115. Retrieved from https://ojs.wsb.edu.pl/index.php/fso/article/view/266

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Liviu Warter

liviu@warter.ro

Affiliation:

“Alexandru Ioan Cuza” University, Iaşi, Romania

Iulian Warter

iulian@warter.ro

Affiliation:

“Alexandru Ioan Cuza” University, Iaşi, Romania