The Bank for International Settlements found, and several large banks are learning, that the alleged benefits of banks merging for reasons of profitability often prove to be illusionary. Bank profitability has fallen in 12 countries despite a wave of consolidation, mainly because acquirers tend, on the one hand, to overpay and, on the other hand, to underestimate organisational problems. 7.
Lessons learnt from other mergers and takeovers  Despite the continued pace of merger activity, new deals are meeting with increasing scepticism among investors. The reason is simple - most mergers have simply not delivered the benefits that were promised.