How communication approaches impact mergers and acquisitions outcomes

Figures & data

Figure 1 Interaction between timing and richness of M&A communications.

Table 1 State of consolidated banks and acquisition group's capital base as on 31 December 2005.

Name of bank and acquisition group	Numbers of merged banks	Capital base (in billion)
Access Bank: Access Bank; Capital Bank; Int'l; Marina Bank	3	28
Afri Bank: Afribank Int'l (Merchant) Bank; Afribank of Nigeria	2	29
Diamond Bank: Africa Int'l Bank; Diamond Bank; Lion Bank; Prudent Bank; Reliance Bank	5	33.25
Ecobank Nigeria: Did not merge and therefore was not included in this study	0	25+
Equitorial Trust Bank: Devcom Bank; Equatorial Trust Bank	2	26.5
Fidelity Bank: Fidelity Bank; FSB Int'l: Manny Bank	3	29
First Bank of Nigeria Plc: FBN (Merchant Bankers) Ltd; First Bank of Nigeria; MBC Int'l Bank; NBM Bank Ltd; Trust Bank of Africa	5	44.67
First City Monument Bank: Co-operative Development Bank; MIDAS Merchant Bank; Nigeria-America Merchant Bank; First City Monument Bank	4	30
First Inland Bank Plc: First Atlantic Bank; Int'l Merchant Bank(IMB); Inland Bank; NUB	4	30
Guaranty Trust Bank Plc: Did not merge and therefore was not included in this study	0	34
Platinum-Habib Bank Plc: Habib Nigeria Bank; Platinum Bank	2	25
IBTC Chartered Bank Plc: Chartered Bank; IBTC Ltd; Regent Bank	3	35
Intercontinental Bank Plc: Equity Bank of Nigeria; Gateway Bank of Nigeria; Global Bank; Intercontinental Bank	4	51
NIB Ltd (Citi Group): Did not merge and therefore was not included in this study	0	25
Oceanic Bank Int'l: International Trust Bank; Oceanic Bank	2	31
Skye Bank: Bond Bank; Cooperative Bank; EIB Int'l Bank	3	37.7
Spring Bank Plc: ACB Int'l Bank; Citizen Bank Int'l; Fountain Trust Bank; Guardian Express Bank; Omega Bank; Trans Int'l Bank	6	27
Stanbic Bank Nigeria Ltd: Did not merge and therefore was not included in this study	0	25
Standard Chartered Bank: Did not merge and therefore was not included in this study	0	26
Sterling Bank Plc: Indo-Nigeria. Bank; Magnum Trust Bank; Trust Bank of Africa; NAL Bank	4	25
Union Bank: Union Bank Plc, Union Merchant Bank; Universal Trust Bank	3	58
United Bank of Africa: Continental Trust Bank; Standard Trust Bank; United Bank of Africa	3	50
Unity Bank: Bank of the North; Centrepoint Bank; First Interstate Bank; Intercity Bank; New Africa Bank; NNB Int'l Bank; Pacific Bank; Societe Bancaire Nig. Bank; Tropical Commerce Bank	9	30
Wema Bank: National Bank of Nigeria; Wema Bank	2	35
Zenith Bank: Did not merge and therefore was not included in this study	0	38

Source: Derived from Central Bank of Nigeria (2006).

Table 2 Interviewees.

Bank	Interviewee	Employment position	Date
FCMB	Interviewee 19	Head of retail banking	18/12/2009
	Interviewee 1	Branch staff	18/12/2009
	Interviewee 20	Branch head of operations	22/07/2010
	Interviewee 37	Regional manager	13/10/2011
	Interviewee 38	Area executive north 1	13/10/2011
	Interviewee 61	Group head operations	28/09/2012
ETB	Interviewee 21	Marketing officer	16/12/2009
			06/07/2010
	Interviewee 2	Retail leader	18/12/2009
			23/08/2012
	Interviewee 58	Anonymous staff	23/08/2012
UBA	Interviewee 3	Investment banker	14/12/2009
	Interviewee 22	Branch manager	14/12/2009
			02/11/2011
			29/09/2012
	Interviewee 23	Former general manager	27/05/2010
	Interviewee 36	Manager – insurance subsidiary	11/01/2012 (26/06/12)
	Interviewee 51	Head of operations	26/06/2012
	Interviewee 53	Branch staff	11/07/2012
	Interviewee 54	Banking officer	25/06/2012
Bank PHB	Interviewee 24	Branch auditor	21/12/2009
	Interviewee 25	HR manager	09/07/2010
	Interviewee 48	Principal manager public sector	10/10/2011
	Interviewee 49	Head of operations	10/10/2011
			18/09/2012
Diamond Bank	Interviewee 4	Branch staff	15/12/2009
	Interviewee 26	Former executive director	19/12/2009
	Interviewee 42	Executive director branch development	12/10/2011
	Interviewee 43	Regional manager	12/10/2011
			22/08/2012
			24/08/2012
	Interviewee 57	Anonymous staff	22/08/2012
	Interviewee 27	North-east HR manager	09/07/2010
Access Bank	Interviewee 28	Branch manager	22/12/2009
	Interviewee 5	HR dept	22/12/2009
	Interviewee 29	HR deputy manager, staff welfare unit	08/07/2010
	Interviewee 62	Head cash management	28/09/2012
Unity Bank	Interviewee 6	Head office staff	17/12/2009
			26/08/2012
	Interviewee 7	Financial control unit	17/12/2009
Union Bank	Interviewee 8	IT department	28/12/2009
	Interviewee 9	International operations	28/12/2009
			22/08/2012
	Interviewee 56	Anonymous staff	22/08/2012
Sterling Bank	Interviewee 30	Public sector dept	27/12/2009
Skye Bank	Interviewee 31	Head customer service	27/12/2009
Spring Bank	Interviewee 10	Clearing staff	23/12/2009
	Interviewee 46	Area executive north	11/10/2011
	Interviewee 47	Branch manager	11/10/2011
IBTC-Chartered	Interviewee 11	Inspection (Sept.)	23/12/2009
			28/09/2012
Fidelity	Interviewee 32	Retail marketer	24/12/2009
	Interviewee 39	Group head operations	13/10/2011
	Interviewee 40	Head e-banking	13/10/2011
	Interviewee 41	Head of training HR division	12/10/2011
Finbank^a	Interviewee 33	Deputy operations manager	18/12/2009
	Interviewee 12	Operations staff	18/12/2009
			24/08/2012
			28/08/2012
	Interviewee 34	Regional manager north	18/12/2009
	Interviewee 35	Head office staff in HR department	09/07/2010
	Interviewee 44	Deputy manager risk asset	11/102011
	Interviewee 45	Head public sector	11/102011
	Interviewee 55	Anonymous staff	24/08/2012
ICB	Interviewee 13	Branch staff	14/12/2009
	Interviewee 52	Branch staff	02/07/2012
First Bank	Interviewee 14	Auditor	22/12/2009
	Interviewee 50	Senior executive	10/06/2012
Afri Bank	Interviewee 36	Principal manger	16/12/2009
Wema Bank	Interviewee 15	Public sector	19/12/2009
	Interviewee 16	Head office	19/12/2009
			23/08/2012
	Interviewee 59	Anonymous staff	23/08/2012
Oceanic Bank	Interviewee 17	Branch staff	16/12/2009
			24/08/2012
	Interviewee 18	Clearing unit	16/12/2009
	Interviewee 60	Anonymous staff	24/08/2012

a First Atlantic Bank, Inland Bank, IMB Bank and NUB International Bank: The combination of these four names resulted in Finbank.

Table 3 Contextual data for merged banks by typology quadrant.

	Merged bank	Numbers of banks merged	Capital base at time of merger	Ranking of Tier 1 capital^a end of merger year	Post-acquisition integration strategy^b
Feast or famine	Bank PhB	2	N25bn	15th	Structural
	FCMB	4	N30bn	16th	Assimilation
	First	5	N45bn	1st	Assimilation
	Union	3	N58bn	2nd	Assimilation
Perfunctory	Finbank	4	N30bn	8th	Structural
	Spring	6	N27bn	9th	Novation
	Unity	9	N30bn	14th	Novation
Immersive	Access	3	N28bn	12th	Assimilation
	Diamond	5	N33bn	4th	Assimilation
	Fidelity	3	N29bn	13th	Assimilation
	IBTC	4	N35bn	6th	Structural
	Sterling	4	N25bn,	10th	Novation
	Skye	3	N38bn	11^th	Novation
	UBA	3	N50bn	3rd	Assimilation
Drip-feeding	Intercontinental	4	N51bn	5th	Assimilation
	Wema	2	N35bn	7th	Novation

a Tier 1 Capital ranking is an industry specific indicator of financial robustness.

b Post-acquisition integration strategies (Schweiger et al., 1993).

Figure 2 Communication continuity and richness grid.

Schweiger, D. M., Csiszar, E. N., & Napier, N. K. (1993). Implementing international mergers and acquisitions. Human Resource Planning, 16, 53–70.

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