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The establishment and investment of foreign bank in a new country is symbolic in terms of internationalization and liberalization. Investment by a foreign bank can not only bring in funds to Taiwan, but also bring in international talents and the experience which would positively influence Taiwan’s financial development. From the late 90’, the most efficient way for a financial institution in Taiwan to expand its territory scope (i.e. branch) was merger and acquisition because the competent authority in Taiwan suspended to issue new branch licenses to any applicant. Hence, there were trends in Taiwan for financial institutions to conduct merger and acquisition. Until now, the financial market has evolved and developed into a new era, most large banks are closing their branches step by step due to the new platform of e-banking. During the past 20 years, there have been several cases involving foreign bank’s merger and acquisition in Taiwan, and even, some international financial groups disposes their assets and business here and leaved Taiwan’s local market. This study was trying to explore the relevant cases to observe and analyze the motivation, purpose and arrangement behind a foreign bank’s M&A, the integration process and the impact on Taiwan’s financial market, and to put forward conclusions and suggestions.
The method of document analysis was used to introduce the motive, purpose, types of transactions and the comprehensive effects of M&A and synergy due to the integration in order to present quantitative significance. Also, through the interview method, the interviewee's point of view is used to deeply understand the integration process and impact of the cases to present a qualitative answer. For this study, three M&A deals by multinational financial institutions, Citibank, ANZ Bank and Mitsubishi UFJ Bank, were chose to illustrate the M&A and integration process, and how to achieve synergy in M&A.
Due to the nature of the financial industry that is subject to supervision and monitor of the competent authorities, governmental policy is the prerequisite factors which could affect the operation of financial institutions and even the success of M&A and integration post-M&A. Hence, financial institutions must continuously communicate with the competent authority and update the progress, which can facilitate the acquisition and integration process. It is crucial to put intangible assets such as “corporate culture”, “employee expertise” and “corporate operating procedures” into evaluation for integration, respect of corporate culture will also help the integration and reach synergy. Last, but not the least, must take system risk and market change into consideration during a M&A, integration and operation of financial institutions, conservative estimation and stable operation are required to respond to unexpected variables and properly adjust when they occur.
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