Journal of Emerging Trends in Economics and Management Sciences: Home

Abstract:
Merger and acquisition among firms indicate the magnitude of economic gains that may arise depending upon the cultural fit between the merging firms. This study analyzed the effect of mergers and acquisition on performance of firms in Nigeria. Panel data for the study was collected on four sample companies for the period of fifteen years. Conglomerates companies were purposively selected for this study because they are the only sector on the Nigeria stock exchange list that has carried out merger and acquisition which covered the period of study (1990-2005). An analysis of the performance of the selected companies before and after the merger and acquisition transactions reveals that the post merger and acquisition transactions really improved the performance of sampled companies. This implies that the realization of merger and acquisition objectives such as optimization of resources, removal of duplication of operating cost and well coordinated management could be achieved.

Keywords: mergers, acquisition, firm's performance, conglomerates, quoted firms.

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