In context of Nepal

The merger and acquisitions are initiated to improve economic performance, improve capacity utilization, enhance productivity and achieve cost effectiveness of running the public enterprise through various modalities of conversion and transfer. In fact, mergers and acxuisitions are initiated due to inefficient management, synergy, diversification, market share, strategic realignment, information signaling, regulatory and political change, buying of undervalues assets, agency problems and mismanagement, managerialism and tax considerations.


In order to get the benefits of merger and acquisition, by exercising the required provisions of the company's act, many companies have been acquired and merged such as Bhrikuti pulp and paper factory, leather age Bansbari Tannery and Shoes factory, Nepal Film Development Corporation, Harisidhi Brick and Tile factory, Tobacco Developement corporation, Nepal Lube Oil Limited, Balaju Textile Industries, Bitumen and Barrel Industries Limited, Raghupatu Jute Mills, Nepal Bank Limited, Agriculture Tools factory, etc. Even at present, the regulating authorities are considering the amalgamation of weaker companies, banks, service industries and other nom-bank financial institutions to stronger ones.