A Study of M&;A in Taiwan Financial Industry ─ The Case of Cosmos Bank

• Main Authors: Chang-hsiang Tsao, 曹昌祥
• Other Authors: Jen-Tsung Huang
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/czfkfa

碩士 === 國立中山大學 === 高階經營碩士班 === 103 === Enterprises are now under a competitive business environment; industry must face globalization and the pressure of international competition. All should consider strategic positioning in the next step. Due to dramatic industry change and transformation, enterprises cannot stop improving any more, but talk about M&;A countrywide in order to increase competitiveness, or talk about strategic alliances to leverage corporate resources abroad. Under the awareness of “Bigger in scale is better than smaller”, the merger is the fastest way to enlarge bank business scale. Although integration process is hard to proceed, it will create synergy for merger after effective integration in one year. This thesis is base on a case study that CDI bank acquires Cosmos Bank, combined with practical experience to discuss the motivation and the benefits after M&;A. We find the M&;A can help to create synergies in 3 directions. The first is to reduce the company''s cost of capital significantly. Second, it can help to improve liquidity of CDI bank from previous situation. Finally, the M&;A could enhance operational performance and efficiency. This thesis suggests that M&;A synergy of 2 companies comes from the benefits of complementary business and competitive scale, and the results can be a reference for Competent Authorities and for future financial development. What we could find from this study is new business platform after the merger can provide integrated service effectively, such as asset allocation in a proper methodology, more service subsidiaries, diversified business model, and financial management in a comprehensive way. Not only expansion of assets scale can enhance its domestic competitiveness, but also gain more bargain power for overseas-market development in the future. It provides a new way of thinking about how to improve the plight of banking businesses.