Acquisition of ANZ Grindlays by Standard Chartered Bank

Banking sector is one of the fastest growing areas in the developing economies like India. M&A is discussed as one of the most useful tool for growth, which has evoked the interest of researchers and scholars. Indian economy has witnessed fast pace of growth post liberalization era and banking is one of them. M&A in banking sector has provided evidences that it is the useful tool for survival of weak banks by merging into larger bank. It is found in our study that small and local banks face difficulty in bearing the impact of global economy therefore, they need support and it is one of the reasons for merger. Some private banks used mergers as a strategic tool for expanding their horizons.
This report talks about the acquisition of ANZ Grindlays bank by the Standard Chartered bank. Standard Chartered PLC is a British multinational banking and financial services company headquartered in London. It operates a network of over 1,700 branches and outlets (including subsidiaries, associates and joint ventures) across more than 70 countries and employs around 87,000 people.
It is a universal bank with operations in consumer, corporate and institutional banking, and treasury services. Despite its UK base, it does not conduct retail banking in the UK, and around 90% of its profits come from Asia, Africa and the Middle East. In 2000, it completed the acquisition of ANZ Grindlays bank in a $1.34 Billion deal.
The following are the primary benefits that the participants can expect in a merger: * Sick banks survived after merger. * Enhanced branch network geographically. * Larger customer base (rural reach). * Increased market share. * Attainment of infrastructure.

The reasons for the acquisition of ANZ as described by the group chief executive of Standard Chartered, Rana Talwar are as