Impact of Merger and Acquisition on Performance of Deposit Money Banks Nigeria

ABSTRACT This study examines the impact of Mergers and Acquisition Strategies on the performances of Deposit Money Banks in Nigeria. The total population of the study is the 24 consolidated Deposit Money Banks in Nigeria from 2002 to 2017. The sample size used is the ten selected banks namely: *First Bank, Oceanic Bank, Wema Bank, Diamond, FCMB, Union Bank, Access Bank, UBA, Skye Bank, Fidelity Bank*, respectively. Data were collected through secondary source to analyze the objectives, using descriptive statistics and Paired samples test of difference at 5% level of significance with the aids of E-views software version 8.0 which is an improvement on the ordinary student t-test. Findings revealed that, there is a statistically significant relationship between (M&A) and performance of selected Banks. In conclusion the research shows that, there is a significant relationship between Pre- and Post- Merger and Acquisition and Corporate Survival of the selected banks. That, there is a significant relationship between Pre-merger and acquisition and post-merger & acquisition and Performance (Profitability) of the selected banks in terms of *Return on Assets (ROA)* and *Return on Equity (ROE).* The study therefore recommends that, Mergers and Acquisition activities should be encouraged because it leads to the corporate Survival of the entire Deposit Money Banks Nigeria. Other sectors facing liquidity issues that are wishing to survive, expand and improve their profit base should in future apply the principles and strategies of mergers and acquisition in their future activities since it leads to good corporate Growth and sustainability. Keywords: Acquisition, Banks, Deposit, Impact, Merger, Money, Performance.