In the corporate world, domestic and cross border mergers and acquisitions are almost daily events. It is part and parcel of the investment decision in corporate finance. There are multitude of theories for growth and restructuring companies through mergers and acquisitions. Among them is the efficiency theory and this falls in line with primary objective of maximization of shareholders value. The efficiency theory focuses on synergies.
a. Comment on the various types of synergies.
b. Statistical evidence shows that worldwide, there are more failure than successful merger and acquisitions. Discuss the causes for failures in mergers and acquisitions.
c. In order to weather the challenges that the coming decades will bring , a number of banks in Malaysia are looking to increase size in order to be more robust and more resource in an increasingly sophisticated financial industry.
Other factors that drive the consolidation of emerging global market for Islamic financial product. RHB Group and AmBank Banking Group are currently discussing a possible merger between the two banking groups. Conduct a critically analysis of the proposed merger between RHB and Ambank.