The merger of Royal Bank of Scotland (RBS) and National Westminster Bank

The merger of Royal Bank of Scotland (RBS) and National Westminster Bank (Nat West) and other major British banks including Barclays and Woolwich Building Society has created the boast considerable economic and social scientific debate (com Papers4you., 2006). It is important to understand why such mergers take place and the potential benefits of such development. RBS and Nat West merger was to provide poor service inefficiency NatWest initially formed byNow proposed merger with Bank of Scotland. Nat West to benefit from the effects of thinking about the future, in the RBS group.

The entrepreneurial spirit will help the bank and to promote reunification in a highly competitive market further, while a high level of customer satisfaction - the key to the survival of the industry. Impact on shareholders for the merger or the discussion may differ materially lead to instability and lack of confidence. After completingRBS has £ 20.8 billion euros, the income from shares rose in price at an attractive level, in line with the British economy, which shows the power of Fusion. In essence, the driving force behind the successful bid more than the Royal Bank of Scotland RBS, in fact, most of the expectations that the offering price of bitumen perfect.

There are many benefits to be expected merger, creating a wider customer base, maintaining market power and, ultimately, reduce the risk (Papers4you.com, 2006).However, in the redesign of redundancy and unemployment remains at hand. A new article in the BBC has revealed that RBS expects to obtain an efficient operation, reducing costs by 1 billion pounds of threat NatWest 18,000 employees (Friday, February 11, 2000). However, moves by "downsizing" of the financial services market, where adoption of the sector of e-commerce in terms of Internet banking and telephone.

Now, new areas ofJobs created by the host system, the free development of large economies of scale. Therefore, the combination of innovation and development, additional staff to the highest standards of service to customers of the railroad and the knowledge to maximize its effectiveness. Today, RBS and Nat West group is growing in strength, with a state of the world and the second largest market capitalization in Europe. The growth of this great portrays Bankthe positive effects of anti-competitive and consumer at the center of the merger.

References

Anderton, A (2001) third edition of Economics, Causeway Press
BBC News article;
Thursday, January 27, 2000, "Bank of Scotland: bold move by the oldest bank in the United Kingdom," [http://news.bbc.co.uk/1/hi/business/621123.sm]
Http: / / news.bbc.co.uk/1/hi/business/639201.stm Friday, February 11, 2000, Nat West merger happiness mixed "
Monday, February 72000, "Banking on size to compete," http://news.bbc.co.uk/1/hi/business/the_company_file/456551.stm
Merge Records For You (2006) "Dissertation P/F/125. Master. United Kingdom Banks: Evidence 1995-2001," available at http://www.coursework4you.co.uk/sprtfina33.htm [17 / 06 / 2006 ]
Papers For You (2006) "P/F/73. Synergies in mergers and acquisitions: the case of two real mergers (Royal Bank of Scotland and NatWest, Barclays and Woolwich), available athttp://www.coursework4you.co.uk/sprtfina33.htm [18/06/2006]