| Summary: | Only a few of the bank merger and acquisition attempts have been concluded
successfully. The recent success of the Barclays Bank PLC and Absa Group
acquisition has proved that success is possible when the transaction is
conducted properly. The aim of this study was to identify the potential driving
factors behind this success and to illustrate the effect of these factors on
management and performance.
The general objective of this dissertation was reached by conducting research
on this subject. The banking sector in South Africa has been described to set
the background for discussing the history of bank mergers and acquisitions in
our country. Discussing the risk considerations with regard to the banking
industry was essential to this study in order to determine the potential driving
factors of success. After identifying these factors, certain aspects of
management and the conducting of these management tasks were discussed.
A few financial performance measures relating to the banking industry
specifically were identified and explained. The implementation of all these
factors, aspects and measures on the Absa-Barclays transaction has shown
some significant results. Apart from the research done, information was
gathered through the completion of a questionnaire and the interpretation of
both Absa's and Barclays's financial reports for 2005.
The analysis of the driving factors of success has indicated the success of the
transaction. The change in management structure as well as the way in
which the important human factor was approached and being dealt with by
management, has illustrated the potential success of the acquisition. All of
the financial performance measures revealed positive results after the
announcement of the acquisition. The success of this transaction can be
used as benchmark when conducting similar transactions in future. === Thesis (M.Com. (Management Accounting))--North-West University, Potchefstroom Campus, 2006.
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