Royal Lender of Scotland and National Westminster Bank

It is vital that you realize why such mergers happen and the potential benefits of doing consequently. The RBS and Nat West merger was produced in providing Nat West from inefficiencies of poor solutions actually developed from the merger bid proposed by the lender of Scotland. Nat West will take advantage of the forward thinking effect present at the RBS Group. The entrepreneurial spirit can help the bank in addition to the whole merger to go forwards in an extremely competitive market concurrently maximising client satisfaction – a major essential to survival in this market. Impact on shareholders through the merger or discussion procedure can vary causing instability and insufficient confidence. Following a completion of the RBS ?20.8 billion bid; show yields rose in cost to an appealing level good UK economy thus portraying the effectiveness of the merger. Essentially the driving pressure behind the achievements of the RBS bid over the Royal Lender of Scotland was actually the bigger share price targets offering an ideal icing.

Royal Lender of Scotland and National Westminster Bank news business

There are various foreseeable benefits associated with merging to make a larger customer bottom, maintaining market ability and eventually minimizing risk (Papers4you.com, 2006). Even so, in the reshuffling procedure redundancies and unemployment happen to be remarkably evident. A BBC Reports article exposed that the RBS hopes to accomplish efficient procedure by trimming costs by ?1 billion thus threatening 18,000 Nat West Employees (Friday, 11 February, 2000). Nevertheless, worker downsizing techniques with the financial solutions market where the change from branch based providers to E-commerce regarding internet and phone banking services. Henceforth, brand-new areas of employment are manufactured accommodating an advancing program therefore giving scope to significant economies of scale. So the merger boasts after innovation and creation where further workers will learn to the best standards to provide customer services and understanding of products attaining greater performance. Today the RBS and Nat West group happen to be growing from durability to strength with world-wide status and second most significant market capitalisation within European countries. The rise of the super lender portrays the positive influence of combating competition and inserting the consumer in the centre of merger proposals.

References

Anderton, A (2001) Economics Third Edition, Causeway Press

BBC News Articles;

Thursday, 27 January, 2000, ˜Lender of Scotland: bold maneuver by UK’s oldest lender’ http://news.bbc.co.uk/1/hi/business/621123.sm

Friday, 11 February, 2000, ˜Nat West merger’s blended fortunes’ http://news.bbc.co.uk/1/hi/business/639201.stm

Monday, 7 February, 2000, ˜Banking on size to contend’ http://news.bbc.co.uk/1/hi/business/the_company_file/456551.stm

Papers FOR YOU PERSONALLY (2006) “P/F/125. Master’s Dissertation. UK Banking institutions’ Merger: Evidence from 1995-2001 Period”, Obtainable from http://www.coursework4you.co.uk/sprtfina33.htm [17/06/2006]

Papers FOR YOU PERSONALLY (2006) “P/F/73. Synergy from the Mergers and Acquisitions: circumstances of two legitimate mergers (Royal {Lender} of Scotland and NatWest; Barclays {Lender} and the Woolwich)”, {Obtainable} from Papers4you.com [18/06/2006]

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