Analysis Of Bank Merger & Acquisition Strategy

Bank Mergers and acquisitions (M&A) ushered in a period of prosperity in the second wave of global M & A. With the fifth merger wave sweeping the world, the bank industry has become a major player in the M & A activity. Banking resources keeps merging into those with larger scale. Bank merger waves have been changing the international competition in the banking sector of the pattern and trend.With the domestic market economic environment continues growing mature, China's banking environment has been further improved, either. The past two years, three state-owned commercial banks such as China Construction Bank (CCB), Bank of China and Industrial and Commercial Bank of China have been initially public offering. For them, access to international markets is becoming an increasingly strong demand, while the banking industry still views M&A as a viable growth strategy. International experience shows that after IPO commercial banks have more advantages in the capital operation fields.China construction Bank has been actively implementing comprehensive upgrades of the core competitiveness to improve its strategic restructuring since its joint-stock transformation. While maintaining advantages of the traditional business growth, CCB still manages to achieve some kind of effectiveness in strategic transformation. This paper takes the CCB Merger for example, in a strategic analysis perspective, attempting to expound that it was on the need for strategic transformation, CCB entered into the Acquisition Agreement with Bank of America Corporation (Asia).The thesis consists of five chapters. In the first chapter it introduces the history of corporate merger and Acquisition on which bank M&A theories are based. And then in the second chapter it analyzes the concept of M&A, the reason for M&A and some cases of M&A both in world and in China. While chapter three and chapter four are the focus of the thesis, respectively conducts a thorough analysis and exposition of both CCB's external environment and its resources and ability, then draws the conclusion about what the bank's core competitiveness is. Chapter 5 sums up the main conclusion of the thesis, that is, bank M & A should be based on strategic need, and to contribute to promote the realization of its strategic goals.