MOTIVES OF REALIZATION OF AGREEMENTS OF MERGERS AND ACQUISITIONS IN THE BANKING SECTOR OF UKRAINE

Daria D. Hontar, Y. S. Tropitsyna, Victoria M. Ostapenko

Abstract


The aim of the study is to generalize the tendencies of development of the market of mergers and acquisitions in the banking sector of Ukraine, to determine the efficiency of these transactions by calculating the price multipliers and explore the main reasons for their implementation. The importance of studying the motives of agreements is caused by significant increase in the volume of mergers and acquisitions in the banking sector in recent years and the specific conditions of implementation of these agreements. In the article it was calculated the average values of main multipliers of assessing the value of Ukrainian banks in agreements of mergers and acquisitions by foreign investors during 2004–2017 and it was set their discrepancy to recommended values. It was systematized the main reasons of implementation these agreements and identified the barriers of the development of banking market of M&A in Ukraine. Research the motives of M&A in the banking sector allows to conclude about the clear positive effect of these transactions. However, analysis of price multipliers of M&A in the banking sector of Ukraine during 2004-2017 revealed the poor quality of realized transactions. The main motives of these agreements offered are the following: safety, investment, information and tax reasons. Ukrainian banks that have been eliminated in recent years could be the main contenders for consolidation with the banks that work more efficiently.


Keywords


bank; mergers and acquisitions; motives of realization of agreements; price multipliers.

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DOI: https://doi.org/10.18371/fcaptp.v2i23.121160

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Copyright (c) 2018 Daria D. Hontar, Y. S. Tropitsyna, Victoria M. Ostapenko

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ISSN (print) 2306-4994, ISSN (on-line) 2310-8770