The Effect of Merger and Acquisition on Financial Performance of Selected Companies: a Study of Bua Cement

The study assesses the impact of the merger between Cement Company of Northern Nigeria (CCNN) and Obu Cement Company on the financial performance of BUA Cement. The study specific objectives include the following: to assess the mean difference between the firm's Return on Assets (ROA) before and after merger, to assess the mean difference between the firm's Return on Equity (ROE) before and after merger, and to assess the mean difference between the firm's profit margins before and after merger.  The descriptive research design was used and the data were sourced from secondary sources. Paired t-test inferential statistics was used to test the formulated hypotheses. The major findings from the study are there is a statistically significant difference between ROA before the merger and ROA after the merger. Also, the merger significantly affects BUA Cement’s Return on Equity (ROE), and there are financial challenges related to equity returns following the merger. Furthermore, the study also revealed that the merger has led to significant operational and strategic benefits for BUA Cement, as evidenced by an improvement in profit margins when comparing pre- and post-merger profitability. On the basis of the above findings, the study concluded that merger between Cement Company of Northern Nigeria (CCNN) and Obu Cement Company has significant impact on the financial performance of BUA Cement.