Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 2 April 1998
Length: 31 pages
Data source: Field research
Abstract
Chase Bank and Chemical Bank intend to merge, producing the largest commercial bank in the United States, and the fourth largest in the world. Projected financial benefits under the merger reflect significant planned reduction in operating costs, including 17,000 employee layoffs. Management also expects the merger to produce significant revenue increases as a result of increased economies of scale and scope, and other benefits of size and market leadership. The task of valuing the merger gains, negotiating an acceptable merger price, and implementing the post-merger restructuring is extremely complex.
About
Abstract
Chase Bank and Chemical Bank intend to merge, producing the largest commercial bank in the United States, and the fourth largest in the world. Projected financial benefits under the merger reflect significant planned reduction in operating costs, including 17,000 employee layoffs. Management also expects the merger to produce significant revenue increases as a result of increased economies of scale and scope, and other benefits of size and market leadership. The task of valuing the merger gains, negotiating an acceptable merger price, and implementing the post-merger restructuring is extremely complex.
Settings
Location:
Industry:
Size:
Gross revenue GBP15 billion, 75,000 employees
Other setting(s):
1995