Study on the Development and Merger & Acquisition of Financial Holding Companies in Taiwan

• Main Authors: Ming-tsai Lee, 李明才
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/19565046398746211265

碩士 === 東吳大學 === 法律學系 === 94 === The Legislative Yuan of Taiwan approved the Financial Holding Company Act in July 2001 in order to enhance the competitiveness of the financial industry, stimulate financial institution revitalization, and exert the synergy of integrated operation of different financial businesses. Since the passage of the law, numerous financial holding companies (FHCs) have been established. There are 14 FHCs in the local financial market up-to-date. To FHCs, merger and acquisition is the most efficient way to achieve the economies of scale, enlarge market share, and improve competitiveness. To stand-alone financial institutions, M&A is the only step for them to become FHCs themselves. As a result, M&A activities proliferated in the recent years. On the one hand, the establishment of FHCs has led the Taiwan financial industry into a new era. On the other hand, the development and the M&A activities of various business lines under the holding company structure, including insurance, banking, securities, etc., also influence the whole financial market. It is time when the financial institutions in Taiwan seek to become big scale and globalized. This study is divided into 7 chapters to analyze the development and the M&A activities of FHCs. The outline of each chapter is summarized below: Chapter 1–Introduction Discuss the research motive, research goal, relevant documentation, methodology, expected result, and the research limitation of this study. Chapter 2–Current development of FHC The concept and the structure of Taiwan FHCs are derived from foreign legislations. This chapter will introduce the historical background and the structural development of FHCs in the United States of America and Japan. Then, the macro environment which stimulated the establishment of FHCs in Taiwan, as well as the development and current status of the existing 14 FHCs in the market, will be further elaborated. Chapter 3–FHC’s M&A strategy, type, methodology, and legislations This chapter is dedicated to the definition of M&A, the theory of M&A motives, M&A strategies, M&A types, relevant attack/ defense tactics, and the legislations of M&A within the Taiwan financial industry. Chapter 4–The financial reform in Taiwan and the case analysis upon M&A activities of FHCs The policy goal and the legal environment of the financial reform in Taiwan will be discussed. In addition, several M&A cases related to government-owned financial institutions will be exemplified to analyze the impact of the second financial reform upon M&A activities of FHCs. Moreover, three latest M&A cases regarding to FHCs will be brought up in order to apply the theories and practices mentioned above into real life situations. Chapter 5–The M&A of FHCs and its implication toward the scope of financial industry Analyze the change of domestic, as well as foreign scope of financial industry due to the M&A of FHCs. The current situation and future trend of M&A activities initiated by foreign financial institutions will also be discussed. Chapter 6–The limitation of M&A laws regarding to FHCs and suggestions upon future legal amendment The development and the legislations related to M&A activities of US enterprises will be described. Domestic legislations of tender offer , Financial Holding Company Act, and Business Mergers and Acquisitions Law will be reviewed. Potential legal amendment will be proposed. In addition, the application of defense strategy toward hostile takeover under the existing legal framework will also be discussed. Chapter 7–Conclusion Aggregate theories, legislations, and practices related to M&A to propose legal amendment which will improve the legal environment of M&A regarding to FHCs. Then, through observation, the M&A and development of FHCs will be divided into three stages so as to conclude this study.