MERGER AND ACQUISITION, IMPLICATION ON THE NIGERIAN ECONOMY

ABSTRACT

This research work studies merger and acquisition, implication on the Nigerian economy. It specifically looks into the merger and acquisition procedure of the companies. An enterprise merger is the fusing together of two or more companies whether the fusion is voluntary or enforced. The various related literatures to the study were reviewed, on which the design of research questionnaire was based on data gathered through information on internet, journal and presentation of papers on merger and acquisition. Findings from the analysis were giving analytical explanations; the study will I therefore provide a useful insight into the rudiments of merger and acquisition procedures. However, the study could not be an all inclusive but it will serve as supplement to the contribution made by various authors on the literature relating to merger and acquisition and as a spring board for further research into this area.

TABLE OF CONTENT

Certification. iii

Dedication. iv

Acknowledgementv

Abstractvi

Table of Contentvii

CHAPTER ONE. 1

1.0 Introduction. 1

1.1 Statement of the Problem.. 3

1.2 Objectives of the Study. 3

1.3 Hypothesis4

1.4 Significance of the Study. 4

1.5 Scope of the Study. 5

1.6 Limitation of the Study. 5

CHAPTER TWO. 6

Literature Review. 6

2.0 Introduction. 6

2.1 Definitions of Merger and Acquisition. 6

2.2 The Nigerian Experience with Merger and Acquisition. 7

2.3 Legal Framework of Merger and Acquisition. 8

2.4 The Role of Securities and Exchange Commission under Merger13

2.5 The Role of the Stock Exchange. 16

2.6 Accounting Procedure for Mergers and Acquisitions, Criteria for Adoption of Merger Accounting 17

2.7 Reason for Mergers and Acquisition. 22

2.8 Characteristics of Mergers and Acquisitions.24

2.9 Mergership as an Investment Strategy. 25

2.10 Valuation of Shares for Merger Purposes26

2.11 Problems and Implications of Mergers27

CHAPTER THREE. 30

3.0 Research Methodology. 30

3.1 Variables of the Study. 30

3.2 Data Collection Source. 31

3.3 Measurement Techniques31

3.4 Reliability and Validity of Data. 32

3.5 Sampling Techniques32

3.6 Techniques of Analysis33

CHAPTER FOUR. 34

4.0 Data Analysis and Presentation. 34

4.1 Introduction. 34

4.2 Analysis of Questionnaire. 34

4.3 Data Presentation and Analysis38

4.4 Test for Hypothesis 1.43

4.5 Test for Hypothesis 2. 45

CHAPTER FIVE. 47

Summary of findings, conclusion, recommendation and suggestion for further studies47

5.1 Summary of Findings47

5.2 Conclusion. 48

5.3 Recommendations49

Reference. 50

Appendix. 51