This, too, is a strategy which has already been practised in recent years – with mixed results. Don’t get me wrong, I’m not saying that mergers are a panacea as such – after all, simply putting two ailing institutions together doesn’t make one robust one. On the contrary, it is a potential source of contagion.
Two minuses might make a plus in the world of mathematics, but that’s rarely true in a merger. Mergers and acquisitions, then, will only ever be crowned with success if they are underpinned by a realistic strategy. Thus, a deal between institutions with complementary regional operations might be a sound idea, as might a European merger.