Pssst… we can write an original essay just for you.
Any subject. Any type of essay.
We’ll even meet a 3-hour deadline.
121 writers online
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.
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.
We provide you with original essay samples, perfect formatting and styling
To export a reference to this article please select a referencing style below:
Sorry, copying is not allowed on our website. If you’d like this or any other sample, we’ll happily email it to you.
Attention! this essay is not unique. You can get 100% plagiarism FREE essay in 30sec
Sorry, we cannot unicalize this essay. You can order Unique paper and our professionals Rewrite it for you
Your essay sample has been sent.
Want us to write one just for you? We can custom edit this essay into an original, 100% plagiarism free essay.Order now
Are you interested in getting a customized paper?Check it out!