Abstract
The primary motives for mergers for financial consolidation are cost savings and revenue enhancement. Cost savings are attributable to economies of scale, economies of scope and more efficient allocation of resources. Consolidation can lead to increased revenues through its effect on firm size, firm scope or market power. Mergers and acquisitions in the banking sector are basically meant to reap the benefits of economies of scale. Mergers also aim for growth in size.
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© 2012 B. Rajesh Kumar
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Kumar, B.R. (2012). Mergers and Acquisitions in the Finance Sector. In: Mega Mergers and Acquisitions. Palgrave Macmillan, London. https://doi.org/10.1057/9781137005908_7
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DOI: https://doi.org/10.1057/9781137005908_7
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