Merger and acquisition in banking sector: a case study of CIMB Thai Public Company Limited | |
| Author | Rodjarek Nilvanich |
| Call Number | AIT Proj. no.SM-10-08 |
| Subject(s) | CIMB Thai Public Company Limited Banks and banking |
| Note | A project study report submitted in partial fulfillment of the requirements for the degree of Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Abstract | After Asian economic crisis in 1997, many of Thai banks were intervened and taken into state of ownership and some did Mergers and Acquisitions with both local and foreign institutions. M&A business strategy has formed to create synergies and to improve competitive advantage as well as to gain market share in order to be able to compete in the rapidly change of the business environment. This project research covers the M&A business strategy in banking sector in Thailand which focus on one selected case study of “CIMB Thai Public Company Limited”. The main objectives of the study are to identify rationale behind M&A, to evaluate post-merger financial performance and to examine the key factors to merger success. The analysis of the case study found that the strategic motive for CIMB Group to acquire BankThai aim to expand its branches in Thailand. Due to the limitation of law which does not allow oversea banks from having more than one branch in the country, has made M&A an attractive strategy for oversea banks in Thailand. Becoming as part of CIMB Group, BankThai has been restructuring its organization which aim to enhance the company efficiency and have better operational performance. By doing M&A, both entities achieve synergies in term of cost cutting, increasing market share and power, attaining economies of scale which result in positive net profit in one year after acquiring. Additionally, in order to successfully accomplish M&A, CIMB Group as an acquirer delivered well organized strategic plan and clearly defined business plan to the merged entity. CIMB Group also considered human resources as an important factor leading to M&A success. The Group believes that if workers feel as part of the organization, it helps the company improve efficiency and achieve its goal. |
| Year | 2010 |
| Type | Project |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Winai Wongsurawat; |
| Examination Committee(s) | Sununta Siengthai;Gopalaswamy, Arun Kumar; |
| Scholarship Donor(s) | Royal Thai Government Fellowship; |
| Degree | Project (M.B.A.) - Asian Institute of Technology, 2010 |