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ABSTRACT
The study investigates the impact of Mergers and Acquisitions on the financial performance of banks in Nigeria, with a major focus on the merger or acquisition between the defunct Standard Trust Bank ltd and United Bank for Africa Limited in 2005. The data utilized for the study were secondary data sourced from Nigeria Stock Exchange Archive, Companies' annual reports, and internet sources. The data collected were analyzed using descriptive statistics and F-test inferential statistics based on analysis of variance (ANOVA) statistical method. The study analyzed the pre-merger and post merger beformace of the two banks for the period 2003 to 2008. The findings from the analysis revealed that mergers and acquisitions have positive and significant impact on banks financial performance in of Nigeria. Specifically, the study revealed that there were significant and postive differences in the post merger performance of U.B.A. The good synergy produced from the mergers and acquisitions process between the two banks led to improvement in UBA’s financial performance including its profitability. The study recommends, among others that mergers and acquistion should be encouraged among Nigerian banks to make them bigger and more financially strong to compete in the global arena.
