Evaluation Of Mergers And Its Benefits To Emirates NBD’s Shareholders, Employees, And Customers: [Essay Example], 359 words GradesFixer
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Evaluation of Mergers and Its Benefits to Emirates Nbd’s Shareholders, Employees, and Customers

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Key benefits of the merger

The merger benefits shareholders, customers, and employees of Emirates NBD. Shareholders benefit from the merger since it has increased international and regional expansion opportunities (DemPaphilis and Donlad, 2008). Similarly, shareholders benefit from the merger because it has improved the capital position and financial strength of the two merging banks. It further benefits shareholders because it has created value for the new bank through cost and revenue synergies.

The merger benefits customers since it has created a higher convenience for them through ATM and domestic branch networks (Reddy et al., 2013). Moreover, the merger benefits customers due to the expanded presence that provides it with broader access to international and regional markets.

Other than shareholders and customers, employees benefit from the merger as well. Employees benefit from the merger because the new bank has a higher ability to attract and retain skilled and experienced employees (Aharon et al., 2010). Employees further benefit from it because it offers them improved career development and training opportunities.

Synergies expected from the merger

There are two types of synergies that were expected by stakeholders involved in the merger which include cost and revenue synergies. An example of a revenue synergy expected from the merger was corporate banking which would involve the sale of significant product capabilities and increased fee income (Rajesh and Manuel, 2009). Another example of a revenue synergy expected from the merger was retail banking. Different from corporate banking, retail banking would involve the sale of major product categories. Cost synergy was expected to be experienced due to retail banking. Cost synergy would be experienced due to price benefits accrued on marketing spending and ATM and Branch consolidation network (Reddy et al., 2013).

Earnings of target shareholders from a merger are usually higher than those gained by shareholders of the other company. Earnings gained by shareholders for their investments in both the acquiring company and the company that is acquired most of the times tend to be lower than those gained before the acquisition. A merger is important because it increases the regional and national power of the two merging companies. A merger increases the financial scale and strength of the merging companies.

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Evaluation Of Mergers And Its Benefits To Emirates NBD’s Shareholders, Employees, And Customers. (2018, November 05). GradesFixer. Retrieved February 25, 2021, from https://gradesfixer.com/free-essay-examples/evaluation-of-mergers-and-its-benefits-to-emirates-nbds-shareholders-employees-and-customers/
“Evaluation Of Mergers And Its Benefits To Emirates NBD’s Shareholders, Employees, And Customers.” GradesFixer, 05 Nov. 2018, gradesfixer.com/free-essay-examples/evaluation-of-mergers-and-its-benefits-to-emirates-nbds-shareholders-employees-and-customers/
Evaluation Of Mergers And Its Benefits To Emirates NBD’s Shareholders, Employees, And Customers. [online]. Available at: <https://gradesfixer.com/free-essay-examples/evaluation-of-mergers-and-its-benefits-to-emirates-nbds-shareholders-employees-and-customers/> [Accessed 25 Feb. 2021].
Evaluation Of Mergers And Its Benefits To Emirates NBD’s Shareholders, Employees, And Customers [Internet]. GradesFixer. 2018 Nov 05 [cited 2021 Feb 25]. Available from: https://gradesfixer.com/free-essay-examples/evaluation-of-mergers-and-its-benefits-to-emirates-nbds-shareholders-employees-and-customers/
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