Mergers and acquisitions performance within South African chemical industry: Pursuit of improved financial performance and economies of scale

Authors

  • Buntu Quwe

Keywords:

Financial performance, mergers, acquisitions, synergy, survey-based methodology, economies of scale

Abstract

Mergers and acquisitions (M&A) are used globally by companies to improve shareholders’ wealth, financial performance, and obtain economies of scale. This study aimed to examine the role of M&A on the performance of companies within the South Africa chemical industry. The study adopted a survey-based methodology to measure performance post-merger. The sample size of the study was 102 individuals, and data was gathered using an expert sampling technique via an online self-administered questionnaire. The data was analyzed using SPSS version 25. The results demonstrate that both financial performance and economies of scale are statistically significant predictors of the role of M&A on performance post-merger. The study contributes to the body of knowledge by exploiting a multidimensional nature of performance, as survey-based methodology uses both financial and non-financial parameters. It is, therefore, important for managers to understand that M&A within the South African chemical industry; are done to achieve financial performance.

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Published

2021-11-01

How to Cite

Quwe, B. (2021). Mergers and acquisitions performance within South African chemical industry: Pursuit of improved financial performance and economies of scale. International Journal of Business and Management Sciences, 2(2), 33-46. Retrieved from https://ijbms.org/index.php/ijbms/article/view/47

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Section

Articles