This research project involved analysis of the events surrounding the acquisition of National Westminster Bank Plc by Royal Bank of Scotland through identification of the factors that led to the business consolidation and the impact of acquisition on RBS’ shareholders’ wealth. …
Download file to see previous pages...
The analysis of the paper shows that the motives behind mergers and acquisitions of NatWest or other business consolidation across Europe are the synergies and various integrative benefits that can be derived in banking industry. Major impact of macroeconomic factors motivating such practices were domestic deregulation, lower interests rates leading to sliding interest income margin and rising growth. Moreover, the 1990s financial dominance was shifted from Eastern financial institutions to the Western banks and technological development especially in terms of IT, changes in corporate thinking and increasing importance of corporate governance practices and shareholder wealth creation were other major factors that motivated the banks to look for possible acquisitions. Therefore, costs reduction, revenue augmentation and NatWest’s wide presence attracted a much smaller banks like RBS to bid and acquire Britain’s one of the oldest banking institutions. The analysis of RBS annual reports provides valuable insight in to whether this has increased RBS’ shareholders’ wealth. The results show that there have been more than expected revenues and costs savings in post acquisition period while the net interest income, total income, and EPS have all increased in absolute terms. However, the comparison of RBS and NatWest with the market returns shows that no value is created for the shareholders in post acquisition period. The reason could have been that RBS continued its acquisition spree without consideration of shareholders, which shows poor governance practices in RBS Group....
Drivers of NatWest Acquisition 13 2.1.5 Structure of Global Banking Industry in 1990s 15 2.1.6 Impetus of Mergers in UK Banking Industry 16 2.1.7 Impact of Consolidation on Firms’ Efficiency 20 3. Chapter 3 22 3.1 Critical Evaluation and Analysis 22 4. Chapter 4 35 4.1 Conclusion and Recommendation 35 Reference List 37 Bibliography 44 1. Chapter 1 1.1 Project Background & Introduction The expansion of world trade as evident from financial and economic globalisation has provided substantial benefits to the countries. Much of these benefits have been a result of the mergers and acquisition activities that has taken place around the world in every sector. Improvement in cost to income ratio is one of the major reasons for merger and acquisition. At the same time, acquisition has another broad aspect. This helps in increasing market share and reducing competition significantly, which enhance firm’s presence and bargaining power over not only consumers but also suppliers. This paper is a critical analysis of one of these acquisitions that took place between RBS and NatWest at the turn of 21st century in UK. This project is outlined in four sections. The first section provides the research aim and objectives. The second section is the literature review, which encompasses the definitions of merger and acquisition, background of NatWest and RBS, drivers of NatWest acquisition, structure of global banking industry, and the impetus for consolidation in general and in UK banking industry and finally, the impact such consolidation has had on the structure and efficiency of the merged banks. The third section is the critical evaluation of the theories in the light of the acquisition’s effects on both the banks. And lastly, the fourth section concludes the paper. 1.2 Project
...Download file to see next pagesRead More
Cite this document
(“Events surrounding Royal Bank of Scotland acquisition of NatWest Dissertation”, n.d.)
Retrieved from https://studentshare.org/business/1394996-events-surrounding-royal-bank-of-scotlands
(Events Surrounding Royal Bank of Scotland Acquisition of NatWest Dissertation)
“Events Surrounding Royal Bank of Scotland Acquisition of NatWest Dissertation”, n.d. https://studentshare.org/business/1394996-events-surrounding-royal-bank-of-scotlands.
The understanding over the impact and influence of misevaluation in the failure of mergers and acquisitions has been presented in a logical and illustrative manner by covering wide arrays of information on the research topic. The introduction part of the research presented an overview of the research topic, aims and objectives and detailed description of mergers and acquisitions.
The paper aims to gain a proper understanding of reservoirs and their function in the society in order to better appreciate the literature relating to the impact of reservoirs in the UK on the surrounding community. This will allow for a better grasp of the issues relating to their impact on communities in which they are built and to which they supply water for drinking and household activities.
The study has been focused on the UK reservoirs and their impacts on the surrounding environments. From the study it can be opined and concluded that the use of reservoirs proves to be highly significant for several purposes and thus the protection and safety of the reservoirs also finds sincere consideration by the government of a nation like the UK.
This research's aim is to assess the impacts of mergers on organizational performance and the wealth of the stakeholders in the communication sector in Europe and America. The research will employ both exploratory and descriptive research to gain in-depth and concise information in the research area.
For this purpose, a comparative analysis between Scotland and Saudi Arabia’s early year education system was conducted. The researcher formulated few research objectives based on identifying the importance of learning through playing activities among children aged 3-5 years, analysing the role played by the governments and private organsiations in developing early year education in Scotland and Saudi Arabia and analysing previous studies on early year education in Scotland and Saudi Arabia.
Part 1 – Project objectives and overall research approach 3
1.1 Reasons for Topic Area and Choosing Particular Organization 4
1.2 Project Objectives and Research Questions 5
1.3 Overall Research Approach 5
Table of Contents
Part 1 – Project objectives and overall research approach 3
(2010) pointed out that private security has become increasing concern for people across the globe with the increase of crime rate. Strom et al. (2010) argued that private security for home should cover all the aspect of home security such as protective measures from break out, burglary, fire etc.
The study was literature review based. It applied a secondary approach of research, in which vital information researched previously for different avenues, and availed online was explored. The study focus of the study was on the Post-Acquisition Staff Retention at Kraft after taking over the Cadbury Company.
According to the report rationales reflect a more proactive and offensive thrust, such as diversification into new geographic markets and therapeutic areas, achieving scale and scope economies, developing competitive capabilities in R&D, and fostering disruptive change. There is the sense that these rationales focus on cost reduction and on revenue enhancement.
13 Pages(3250 words)Dissertation
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Dissertation on topic Events surrounding Royal Bank of Scotland acquisition of NatWest for FREE!