International Mergers and Acquisitions as a Competitive Strategy by Cfc Stanbic Bank Limited in Kenya

Abstract

This study addressed International Mergers and Acquisitions (IM&A) as a competitive strategy adapted by CfC Stanbic Bank Limited. International Mergers and Acquisitions (IM&A) are two broad types of restructuring through which today’s managers seek economies of scale, enhanced market visibility and other efficiencies. Mergers and Acquisitions (M&As) are mechanisms to access critical resources, to increase firms’ power relative to other organizations, and to reduce competitive uncertainty created by resource dependencies among firms. The researcher used both Primary data collected with the aid of an interview guide and Secondary data was collected through review of the contents of various relevant publications and reports at the bank. The major findings of the study were based on the rational for Merger and Acquisition by CfC Stanbic Bank Limited. These included; the merger was to provide CfC Bank with an investor recognized as a banking group with a substantial presence in Africa and other emerging markets, headquartered in Africa and which would have a major interest in securing the future of the various businesses of new entity; large corporate and institutional deals would be enabled through the improved technical support and the global market distribution capabilities of Standard Bank Group. In conclusion, Mergers and Acquisitions are considered as corporate events which help an organization to create synergy and provide sustainable competitive advantage. This study was mainly concerned with a merger and an acquisition originating in a mature African bank. In contrast, it is clear that the biggest challenges of the future will come when acquiring firms come from emerging markets and the acquisition in mature markets providing room for further study