LEGAL FRAMEWORK AND CONSEQUENCES FOR MERGERS AND ACQUISITIONS IN NIGERIAN COMMERCIAL INDUSTRY

Mergers and acquisitions (M&A) in the corporate world are achieving increasing importance and attention, especially with the advent of intense globalization. This is evident from the magnitude of resultant 'mega-mergers and Acquisitions· transacted in recent times. This research work attempts to assess the impact of mergers and acquisitions on the Nigerian Commercial Industry, while also discussing the legal framework of these two corporate concepts. Doctrinal methodology involving the use of statutes and case laws as primary data was used; secondary and tertiary data were also analyzed where necessary. The research analysis considered the Nigerian Airlines, the Nigerian Health sector and the Nigerian pharmaceutical sector. This research analysis also reveals that mergers and acquisitions increase the capital base, expertise and efficiency of merged commercial entities. It also increases the profitablity and liquidity ratio of merged commercial entities. Based on these findings, it can be concluded that the mergers and acquisitions, though not without a few negative sides have improved the overall performance of the commercial industry and has contributed significantly to the growth of the commercial sector for sustainable development. We therefore recommend that due diligence should be adopted in the identification and selection of compatible merging partners in order to achieve synergy. In the case of policyinduced merger and acquisition, for instance where the government orders a private and a general hospital to merge. a reasonable time should be allowed for compliance and implementation should be closely monitored.