| Summary: | 碩士 === 國立臺灣科技大學 === 財務金融研究所 === 96 === The acquisition of Hsinchu International Bank by Standard Chartered Bank marked the first time in Taiwan that a foreign-invested bank acquired a local bank through open bidding. Standard Chartered’s objective for this acquisition, mainly, is to aggressively expand its market share in the financial market of Taiwan, the fourth largest market in Asia, taking advantage of Taiwan’s second financial reform, where foreign banks are allowed to invest in the local market. In this study, we have conducted an analysis on the above acquisition case, and hold the view that the purpose of the acquisition represents part of Standard Chartered’s efforts in implementing its consistent global strategy to develop business in areas such as Asia and the Middle East, where higher growth dynamics are the norm. Standard Chartered Bank, therefore, holds a very aggressive attitude to “deep-plow” in the Taiwan market, the fourth largest financial market in Asia.
Through a case study approach, we try to track the history of mergers and acquisitions by Standard Chartered Bank in recent years and prove that the Bank is implementing its strategies on the basis of its business values and spirit. Through the study on this acquisition case, we also try to discuss the various issues relating to the cross-border acquisition by financial institutions. Focusing on the motivation of Standard Chartered Bank in acquiring Hsinchu International Bank, we will discuss the varieties of issues including the rebuilding of the competitive territory, expediting the speed of market entry, overcoming the entry barriers, learning and developing new competencies, increased diversity and decreased market development costs and risks, etc. The difficulties and challenges experienced in the acquisition process include the inadequate appraisal process on the subject of the acquisition, difficulties in the integration process, inability to achieve a synergy effect from the acquisition, the excessive large business size after integration, the over-emphasis on acquisitions by the management team, excessive diversification and the concerns on increased liabilities after the integration, etc.
Our conclusions are that, the key purpose of the acquisition, in terms of competitive strategies, is to “rebuild the competitive territory among competitors”, particularly in the Greater China market. In this context, the acquisition is deemed to positively contribute to the “increase of market strength”.
Key Words: Acquisition, synergy effect, motivation for the acquisition of banks, strategies for the acquisition of banks
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