1- Tehseen Ullah MB-10-72

2- Faraz Qadir Marral MB-10-71

3- Muhammad Altaf MB-10-31
4- Rashid Minhas MB-10-42
5- Saqib Ihsan MB-10-35
6- Zeeshan Awan MB-10-68
7- Hina Syed MB-10-04
8- Hafiz Muzamil Hussain MB-10-41
9- Malik Umair MB-10-38
Faraz Qadir Marral
MB-10-71
 TABLE OF CONTENTS
 Introduction
 Merger
 Types of Merger
 Acquisition
 Purpose of Merger and Acquisition
 Profile of Union Bank
 Profile of Standard Chartered
 3 Stage Model
 Alliance and Conclusion
 Many companies today, in order to survive and grow,
need and want to be efficient, profitable, flexible,
adaptable, and have a dominant market position.
 This dominant market position could be attain through

deals like mergers and acquisition.

 A merger refers to a process
in which two companies become
one by coming together.

 No one company rules over the other

e.g. GlaxoSmithKline (the second largest
pharmaceutical company in the world).
 Usually the management of both companies shares the
control of the resultant company and names of both
companies are retained for the resulting companies.
 Horizontal – between
business competitors
 Vertical – Moving up or down the value chain
 Purchase – one company take over others
(AS SC TAKE OVER UB)
Hina Syed

MB-10-04
 Acquisitions on the other hand refer to processes in
which one company buys the other company.
 In such a situation the buying company absorbs the

bought company into the existing company.

 As SCB did.
 Mergers
Two firms are combined on a
relatively co-equal basis.
 Parent stocks are usually
retired and new stock
issued.
 Name may be the original
or a combination.
 One of the partners take
over the dominant
management
Acquisitions
One firm buys another
firm.
 Can be by means of
controlling share, a
majority, or all of the
target firm’s stock.
 Can be friendly or hostile.
 Usually done through a
tender offer.
 Mergers and Acquisitions (M&A) serve three main
purposes:
 It can serve as a market entry strategy
 As a corporate portfolio expansion tool
 As a competitive defense mechanism
 Target Name Acquirer Name $ Value of Deal (M)

Yahoo! Inc (YAHOO) Microsoft Corp (MSFT) 43,711.60

Inmobiliaria Colonial SA Investment Corp of Dubai {ICD} 15,213.20
Rio Tinto PLC Shining Prospect Pte Ltd. 14,284.20
Alcon Inc (ACL) Novartis AG 10,547.50
Bolsa de Valores de Sao Paulo Bolsa Brasileira de Mercadorias 10,309.10
{Bovespa} {BM&F}
Millennium Pharmaceuticals Inc Mahogany Acquisition Corp 8,734.10
(MLNM)
Citigroup Inc (C) Government of Singapore 6,880.00
Investment Corp Pte Ltd {GIC}
Weyerhaeuser Co-Containerboard International Paper Co (IP) 6,000.00
Packaging & Recycling Business
MMX Mineracao e Metalicos SA- Anglo American PLC 5,500.00
Certain Assets
Scania AB Volkswagen AG 4,377.50
Sr. Name of Company New name of the Date of Paid-up Ratio
No company/merged with Merger Capital
1 WORLDCALL Multimedia Ltd WORLDCALL Telecom 09/06/2006 530.000 [ 1 : 1.27 ]
Ltd
2 WORLDCALL Broadband Ltd WORLDCALL Telecom 09/06/2006 1,500.00 [ 1 : 1.09 ]
Ltd 0
3 WORLDCALL Communication Ltd WORLDCALL Telecom 09/06/2006 1,831.70 [ 1 : 1.42 ]
Ltd 2
4 Modaraba A1-Tijarah Modaraba A1-Mali 11/07/2006 75.778 Certificate
[ 91 : 2 ]
5 Atlas Investment Bank Limited Atlas Bank Limited 26/07/2006 506.024 [ 1 : 3.14 ]
6 Pakistan Papersack Corporation Thal Limited 04/08/2006 68.993 [ 3.07 : 1 ]
Ltd
7 First Allied Bank Modaraba Allied Bank Limited 25/08/2006 350.000 [ 1 : 024 ]
8 Colony Textile Mills Limited Colony Mills Limited 28/08/2006 250.000 [ 1 : 9.50 ]
9 Union Bank Limited Standard Chartered 29/12/2006 3,387.50 [ 1 : 2.50 ]
Bank Ltd 5
10 Jahangir Siddiqui Inv.Bank Ltd JS Bank Limited 30/12/2006 853.125 [ 1 : 3.24 ]
Rashid Minhas

MB-10-42
 Union Bank was
established in 1991
 Had its headquarters in
Karachi, Pakistan.
Prior to the
acquisition/merger with
Standard Chartered
Bank.
 It was Pakistan's eighth largest bank
 Had 65 branches in some 22 cities
 About US$2 billion in assets
 About 400,000 customers
 Was a local private bank
 Shaukat Tareen was the owner of Union Bank at that

time
 In 2000,it acquired Bank of America's operations in
Pakistan.
 In July 2001,signed an Independent Operator
agreement for American Express Cards in Pakistan.
 In 2002, acquired the operations in Pakistan of
Emirates Bank International .
 This purchase helped Union Bank become one of the
larger private banks in the market of Pakistan.
 In 2006, Standard chartered purchased Union bank for
$32billion that was 500% more than value of Union
Bank. The merged bank is named Standard Chartered
Bank (Pakistan) and now is Pakistan's sixth
 MainlyUnder law’s of Pakistan in 2005 it was a
necessary condition that a bank must have more
than 100 branches network and the paid-up-capital
must be at least $5 billion.
 In2005, at its high boom period standard chartered
bank offered it a deal of $32 billion which was
almost 500% more than its actual price value of $4
billion.
Saqib Ihsan

MB-10-35
 Standard Chartered is one of the largest
international Bank in Pakistan.
 After the acquisition of Union Bank in
September 2006, the new entity Standard
Chartered Bank (Pakistan) Limited was
incorporated in Pakistan on 30 December 2006.
 50 branches
 over 10,000 employees in its
Pakistan operations
 4000 permanent employees
 network of over 165 branches in
Pakistan
 Total branches in Multan are 3
 At international level its Head office is in London.
 In Pakistan the Head office of standard chartered is in

Karachi
 Standard chartered have almost 20 regions in Pakistan
 Regions are sub-divided into 3 sub-continent
Hafiz Muzmmil Hussain

MB-10-41
 This stage includes:
- Identifying reasons for the M & A
- Forming M & A team/leader
- Searching for potential partners
- Selecting a partner
- Cultural assessment
- Planning for managing the process of the M/A
 The acquisition of Union Bank will make SC one of
largest bank in Pakistan by market share of assets…so
its on sixth position in Pakistan.

 It provide significant opportunity for growth in both

Consumer and Wholesale Banking.

 UB will help SC to increase its network up to 100

branches..as Standard Chartered have.
 Activities involved in this stage are:
- Selecting the integration manager
- Designing/implementing teams
- Creating the new structure/strategies/leadership
- Retaining key employees
- Motivating the employees
- Managing the change process

- Deciding on who stays and goes

- Establishing a new culture, structure, HR policies
 Follow international standards
 High rate of resignation
 Immediate replacements due to good opportunities in
the bank
 The upper management remain same and lower level
was contractual
 Promotions were based on the level of experiences
 Productivity level of employees improved
 No risk level of jobs coz there were no lay-offs by the
bank itself
Umair Malik

MB-10-38
 Activities involved are:
- Solidifying leadership and staffing
- Assessing the new strategies and structures
- Assessing the new culture
- Creating and evaluating a new structure
- The concerns of all stakeholders need to be addressed
and satisfied
- The new entity must learn
 Training was given to employees
 Paid better pay structures and bonuses to the employees
for good progresses.
 Mutual decision makings, that who would remain and
who will be sent to other branches.
 Acquired bank management remained in the same
branches.
 No discrimination among UB and SCB employees
which helped to avoid any cultural clashes.
Muhammad Altaf

MB-10-31
 Combining operations may result in
◦ Resistance from rank-and-file employees
◦ Hard-to-resolve conflicts in management styles and corporate
cultures
◦ Tough problems of integration
◦ Greater-than-anticipated difficulties in
 Achieving expected cost-savings
 Sharing of expertise
 Achieving enhanced competitive capabilities
 They face problems in maintaining accounts because both
banks have different criteria's of maintain accounts.

 They start car leasing and giving more loans to industries

and they started giving loans later they face problem in
collection
Zeeshan Awan
MB-10-68
 Alliance is an approach in
which two or more companies
agree to pool their resources
together to form a combined
force in the marketplace .
 Alliances and partnerships can help companies cope with two
demanding competitive challenges
◦ Racing against rivals to build a
market presence in many
different national markets
◦ Racing against rivals to seize
opportunities on the frontiers
of advancing technology
 It can help a company lower its costs and/or gain access to
needed expertise and capabilities
 Strategic alliance – A formal agreement between two or more
separate companies where there is
◦ Strategically relevant collaboration of some sort
◦ Joint contribution of resources
◦ Shared risk
◦ Shared control
◦ Mutual dependence
 Alliances often involve
◦ Joint marketing
◦ Joint sales or distribution
◦ Joint production
◦ Design collaboration
◦ Projects to jointly develop new technologies or products
Tehseen Ullah

MB-10-72
 UBL & U-fone signed an
agreement to formalize an
upcoming marketing initiative
for UBL credit card customers
in a ceremony held in Karachi.

 As part of this strategic

alliance, UBL customers will
have the facility to avail U-
fone special packages with
International Roaming, GPRS,
MMS including security
deposit waivers.   
•Successful merger
•SCB is private sector bank
•Effective in setting goals according to
the competition in the banking sector
•The employees are satisfied with these
goals and performing well to achieve the
goals which were provided to them
•The management style in SCB is kind of
participative management
• Because of identical positioning
of both the banks in the market, the
combined entity of Standard
Chartered and Union Bank
delivering
• Economies of scale,
• A more complete product set,
• A stronger operating platform and
a wider distribution network.
THANK YOU ALL