The Merger and Acquisition of Financial Institutions in Thailand : A Case Study Thanachart Bank with Siam City Bank
Abstract
This dissertation is intended to study the factors and conditions that lead to a merger and acquisition (M&A) between Thanachart Bank (Public Company Limited) and the Siam City Bank as well as study the impact of the merger and acquisition in terms of economy and culture.
The research found that the factors and conditions which contribute to the consolidation M&A firstly as a result of economy policy from political on commercial bank in Thailand during the years 1947 - 1973, which is the patronage system that protects the state commercial banks. Then during 1973 – 1997, was the era in which the state has a role decline as the Banks grew. And the year 1997 - the current, state and international organizations have contributed to changes in the structure of the new banking management. Secondly, the Financial Sector Master Plan Phase 1 and Phase 2 results in Thailand banking system adjustment and merger competition both in Thailand and overseas. Third, adaptability and competitiveness of Thai Banking Institutions, this M&A is a key strategy to strengthen financial institutions in Thailand for the ASEAN market competition.
The study also found the impact of the M&A in terms of economic and cultural. It was found that impact to economic lead to clearer process management and working effectively, achieve economies of scale capital saving, able to meet the needs of more customers, synergy together to enhance competitiveness. After the M&A, Thanachart Bank has a strong financial and expands its related business both vertically and horizontally. While impact to culture, after M&A employees faced the decentralization of the administration, highlighting the success of the organization and society first, and no dividing line between gender in jobs in the organization, practical work atmosphere to fit the situation, and establish a modern corporate image.
