| Summary: | 碩士 === 元智大學 === 管理研究所 === 95 === The banking industry in Taiwan with highly competitive environment, most of the banks have very similar operation and lack of differentiation; as result, profit margin decrease and banks usually lack in economic scale. For the reason, Taiwanese government launches the second financial reform, to encourage the merger of financial institution. The goal is simply to improve the competitiveness of banking industry. Consequently, most of the banks, beside those with high performance and financially sounded, were “forced” to merge with others; thus, the strategy for bank merger become the most important issue with future acquisition process.
This research employs the case study method to explore the merger strategy and synergy from both SinoPac Financial Holding (SinoPac) and International Bank of Taipei (IBT). In addition, a specific analysis would be perform from the perspective of IBT, its internal advantage and external environment. The objective is to understand the issues and solution arising during the merger process.
Based on the intensive examination of the merger process, this paper concludes the following:
1. The main drivers for this merger project were due to both internal problem within IBT and the external atmosphere for financial reform. IBT based on its assessment, determined Sino Pac as the most suitable other half.
2. After the merger, the internal goal is set to optimize the branches synergy to become one of the strongest channels within Greater Taipei; while the external goal is to become one of the best financial holding companies within Greater China region. The new vision is set to be: “ Rooting in Taiwan, Expanding in Asia, and striving to set international service standard.”
3. If integration process did not run smoothly, the synergy would be discounted by great margin. Within integration process the most important task would be: origination structure and personnel issues, IT system integration solution, employees’ right protection, and corporate cultures conflict management.
4. The main synergy for this merger would be: strongest sales channels with in Greater Taipei Region, small-medium business services, and sounded offshore banking foundation.
This study suggests the following recommendations:
1. The merger target must be assessed cautiously
2. Step by step, complete the integration process diligently
3. Focus the resources on the market with advantage
4. Beware of labor issues.
|
|---|
