Rationales and Methods of Acquisition: A Case Study of Bendigo Adelaide Bank and Adelaide Bank Merger

Executive summary
Banking system is often seems to be gaining much popularity in this modern era. Banking
sectors like to be seems to be the most essential for the given system. Its main and the core
elements are its customers. And the financial statement often seems to gain certain
achievements that are often seems to be much more important that are often seems to be the
most essential for the overall development. In the merging process, the government often
seems to be gain much more discourse that are often been seen while highlighting certain
merging activity. Here, the conditions and the situations are often been used to get through
the idea about the postconditions of the merged banks before the completion of the given
process. Before completion of the given situation, there is also a use of certain rules and
regulations that are often tend to use in the prescribed situation. In this context the assignment
also represent the use of the given situation that are often seems to be the most essential for
the given situation just before the companies get merged. It is believed that the readers also
get certain help regarding the gaining of certain new ideas about the postmodern situation of
the achievement of any company by overtaking it. Overtaking any company can only be
possible through certain legal issues.

Introduction
In general business, consolidation is a common way for the companies to expand in terms of
its size rather than able to gain only a temporary benefit pertaining to the internal activities.
At the time of the business consolidation, it has been seen that the acquirer reports the
consolidated results which combine the financial statements with those of the acquirer.
Bendigo Adelaide Bank formed the merger with Adelaide Bank in 2007. The merger process
was implemented by the "Scheme of Arrangement of Adelaide Bank". The various discourse
of the study aims to highlight the rationale for the merger activity (Bendigobank.com.au.
2018). In the given assignment, rules and the regulations within business organizations that
often seem to be the most essential for the overall development of the given system of the
organizations. It is also believed that with the use of the given system, there is a need of the
gained advantages while two companies get merged up or came under certain agreement. In
this assignment two types of industries is being used, specially two types of banks- Bendigo
Adelaide Bank and Adelaide Bank. Both the banks are from Australia based and get merged
up in the year 2007 (Avadhani, 2010).
The rationales behind the acquisition
The intention of business consolidation of both the banks is seen with the various activities to
create a unique partner focused and customer focused financial entity. The merger rationale
was also seen to be based on bringing the specialist skills among the various type the workers
and ensure delivery of a more cost-effective solution for the customers and business partners.
The consolidation process is further seen to be committed to creating a sustainable value for
the shareholders. Some of the main rationales for the bank post-merge process is recognized
to be depicted with the various types of the career opportunities with more large and

diversified operations. The head office functions will be split among the existing sites and the
main form of the consolidation will be depicted with the 4000 staff across every state and
territory in Australia. In addition to this, the partners in both the bank are depicted to be
getting the continued support of the partnership model. These partners will further see a
greater variety in form of the product access. This is further seen to be backed by processing
capability post consolidation of both the banks (Bendigobank.com.au. 2018).
Some of the other rationales are considered with the focus on increasing the value of the
shareholders in the company with an enhanced financial profile and the market capitalization
of $ 4 Billion. Some of the main forms of the financial advantages for the merger process has
been seen to be based on creating a diversified business and improving the loan management
system which was lacking in both the bank before the consolidation process. It is recognized
that the presence of the larger wealth management sector after the consolidation process will
be conducive in enlarging the overall business structure of the company and at the same time
the bank will be able to gain the increased market capitalization of $ 4 billion in the ASX 100
index. The banks will be further able to witness 80,000 retail shareholders. In addition to this,
the national expansion is also considered with covering the branch support in more than 380
branches covering all States and Territories (Bendigobank.com.au. 2018).
Some of the various types of the rationale for the merger process was recognized to be
evident with customers having greater access across more number of products they will be
able to gain access to more number of ATM through more than 380 company with a single
bank account. These factors are seen to directly conducive to improve the current account and
savings account worth. Moreover, the community account will be able to grow in terms of
the different type the aspects of the capacity for growth in “South Australian” branch network
(Bendigobank.com.au. 2018).

Henceforth, it has been seen that the result of the merger was complementary to both the
banks thereby creating major opportunities to such communities who were seeking for long-
term service with the banks. It is further discerned that the overall merger process was
introduced with the reason for foreshadowing of pre-tax profit increase of than 50%. In term
of the Adelaide Bank, pre-merger the bank suffered from limited access to the branches in
South Australia. Bendigo is known as the leader for having the access to a large number of
branch network in Australia and with the support of Bendigo bank, the banks will be able to
expand the business for themselves and the customers (Motley Fool Australia 2016).
The important depiction of the merger process is discerned with creating more value for the
customer and able to introduce a new form of the products. The various types of the other
significant advantages are considered with to create a sustainable value for the shareholders.
The various types of the career opportunities with more large and diversified operations. The
head office functions will be split among the existing sites and the main form of the
consolidation will be depicted with the allotment of 4000 staff across every state and territory
in Australia.
Acquisition methods
Nowadays many companies intend to have a better future which will combine with other
companies. The main way which can combine two companies together is called acquisition.
After the acquisition agreement deal, the bigger company will be called a parent, the smaller
company will be called as a subsidiary. There are two main methods in many acquisition
methods in nowadays Australian accounting market. They are an off-market takeover bid and
a scheme of arrangement.
First of all, the meaning of a scheme of arrangement is a procedure that allows a company to
reconstruct its capital, assets or liabilities with the approval of its shareholder and the court.
(Michael,2018) The target company will transfer all the shares to the bidder as a payback to