Background of the Study
Mergers and acquisitions (M&A) are strategic business activities used by firms to expand their market reach, enhance competitive advantage, and achieve synergies in operational costs, resource utilization, and technological capabilities (Smith & Smith, 2023). In the banking sector, M&As have become increasingly common as financial institutions seek to strengthen their market position, improve efficiency, and navigate regulatory changes (Tsegaye, 2024). While M&As are often viewed as a pathway to increased market share and profitability, the actual outcomes can be influenced by various factors such as integration challenges, cultural differences, and changes in customer perception.
Yobe State, with its growing financial sector, has witnessed several mergers and acquisitions within its banking industry. The goal of these M&As is to consolidate resources, extend geographical reach, and enhance financial performance (Adebayo, 2025). However, the extent to which these activities have resulted in increased market share for the banks involved remains a subject of interest and debate. This study seeks to explore the effects of mergers and acquisitions on the market share of banks in Yobe State, focusing on the strategic goals behind such activities and their actual impact on competitive positioning.
Statement of the Problem
Despite the growing trend of M&As in the banking sector, there is limited research on the specific effects of these corporate strategies on market share within the context of Yobe State's banking industry. Some banks have successfully expanded their market share through M&As, while others have faced significant challenges in terms of integration and customer retention. This study aims to address this gap by examining the actual effects of mergers and acquisitions on the market share of banks in Yobe State, thus providing insights into the effectiveness of M&As in achieving growth in the local banking sector.
Objectives of the Study
1. To evaluate the impact of mergers and acquisitions on the market share of banks in Yobe State.
2. To identify the key factors influencing the success of mergers and acquisitions in the banking sector.
3. To analyze the challenges faced by banks in Yobe State during the post-merger integration process.
Research Questions
1. How do mergers and acquisitions affect the market share of banks in Yobe State?
2. What are the key factors that determine the success of mergers and acquisitions in Yobe State's banking industry?
3. What challenges do banks face in the post-merger integration phase, and how do these affect market share?
Research Hypotheses
1. H₁: Mergers and acquisitions have a significant positive impact on the market share of banks in Yobe State.
2. H₂: Successful post-merger integration is positively correlated with an increase in market share for banks in Yobe State.
3. H₃: The size and financial stability of the merging banks significantly influence the success of M&As in Yobe State’s banking industry.
Scope and Limitations of the Study
This study will focus on banks in Yobe State that have undergone mergers or acquisitions in the last five years. Data will be collected from bank executives, customers, and financial analysts through surveys and interviews. Limitations include potential bias in self-reported data and the difficulty in accessing sensitive financial performance data.
Definitions of Terms
• Mergers and Acquisitions (M&A): The consolidation of companies through various forms, such as mergers, acquisitions, or joint ventures, aimed at increasing market share and operational efficiency.
• Market Share: The percentage of total sales or business revenue in a specific industry or sector held by a particular firm or group of firms.
• Post-Merger Integration: The process of combining operations, systems, and corporate cultures following a merger or acquisition.
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