3. Electronic Theses and Dissertations (ETDs) - All submissions
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Item Impact of mergers and acquisitions on the operating performance of South African companies(2018) Chigwedere, Munyaradzi AmosMost of the literature on mergers and acquisitions (M&A) has been based on studies that have been carried out in the Western world. Countries such as the United Kingdom as well as the United States boast of a lot of literature in this regard. There has however been little or limited research on the same topic in developing countries. This study investigates the determinants of the performance of companies that have been involved in mergers and acquisitions in South Africa from 1999 to 2016. Seventy-one transactions were chosen for this study. All the acquiring companies were listed on the Johannesburg Stock Exchange. The study used six diverse measures of operating performance. The performance measures employed in this study were the raw sales margin (RAWMARGIN), raw return on assets (RAWROA), industry-adjusted sales margin (IAMARGIN), the sales margin adjusted for industry, size and pre-M&A performance (ISPAMARGIN), the industry-adjusted return on assets (IAROA) as well as the return on assets adjusted for industry, size and pre-M&A performance (ISPAROA). Using these measures, data was compared three years prior to the merger as well as three years after the merger. An ordinary least squares regression model was then employed to ascertain how the different factors of post-M&A performance affected these six measures. The study found that the industry-adjusted return on assets model was the best model to predict post-merger operating performance. In this model, preM&A performance and being in the same industry were the only significant variables.Item The performance of cross-border acquisitions targeting African firms and the capital structure influence on the method of payment(2018) Nkiwane, Prince KenAim: The purpose of this study is to examine the performance of cross-border mergers and acquisitions (CBAs) into Africa. Given that the method of payment predicts the performance of an M&A deal, the study further investigates the influence of capital structure on the method of payment. Design, methodology, approach: The study first explores BHARs for the entire sample then the study splits the main sample into developed and emerging acquirers for a detailed analysis. ROEs and ROAs are also examined to assess the robustness of performance. The study then uses panel data of 503 deals from 43 developed and emerging countries in the three years postacquisition. The panel data employs the GLS random effects regression technique. With regards to the influence of capital structure on the method of payment, the study uses crosssectional logistic regressions on the full sample first, followed by the developed economy acquirer sub-sample. Findings: Four key findings emerge from the study. Firstly, on aggregate Africa bound CBAs significantly underperform. Secondly, emerging economy acquirers outperform their developed economy counterparts. Thirdly, firms with low leverage have a higher propensity to use cash as a method of payment. Finally, financial slacking positively predicts the use of cash as a method of payment. The third finding lends some support for the pecking order theory; however, it lends no support for the market timing theory which is a dominant theory in choice of method of payment in the M&A setting. Originality: The study examines the performance of deals exclusive to the African continent. It compares the quality of performance based on the acquirer country economic characteristics, a trailblazing quest considering available literature. Financing choices are explored in an environment (international setting) that is faced with more funding complexity (in contrast to domestic acquisitions).Item Cleaners' perceptions of the pending municipal merger in the west rand(2018) Mokoena, Pinkie Lucia JenniferWhen change is introduced in the workplace, marginalized employees may develop a negative attitude towards the process due to ignorance and fear. The study aimed to explore the cleaning staffs’ perceptions on the municipal pre- mergers between two West Rand Municipalities. The focus study was to explore the cleaning staff members’ emotions and reactions towards the merger before it was to be implemented specifically focusing on their perceptions around job security, job responsibility, and communication. There is currently little research done on pre-mergers, especially between political organizations. The research followed a qualitative approach in a form of a case study. Face to face interviews were conducted with seventeen (17) cleaning staff from two Municipalities to collect data utilizing a self – developed, semi structured interview schedule. Sampling was done using a non-probability convenience sampling method. These employees are usually marginalized and have limited if any decision making powers in their working space. The data was analysed utilizing thematic analysis. The findings identified that even the most marginalized of employees could have an impact on change processes based on several factors and there is a relationship between a previous workplace change experience and a new one. The study transformed into a comparative study as marked differences emerged because one of the Municipalities had been through a merger previously and it had a different impact as compared to those who had not gone through the merger process previously. The findings revealed that communication strategies impact on the perceptions of all levels of employees regardless if they participate in the planning process of any organisational change process or not. Open communication and constant consultation by an employer was found to inspire employees to do well because they become confident of their future within the organization. The research findings carve a way to future pre- merger studies with deeper insight into the usually marginalized groups in the workplace.Item A review of Debswana's performance pre and post the acquisition of De Beers shares by Anglo American plc(2016) Mothulatshipi, KhumoThe minerals industry has in the last decade witnessed volatility, uncertainty, complexity and ambiguity (VUCA). The diamond industry has not been immune to these challenges. These challenges coincided with the decision of the diamond mining family in 2011 to opt out of De Beers after approximately a century of being in control by selling their 40 % stake to Anglo American plc (AA) which already had 45 % stake in De Beers. This transaction increased Anglo American plc‟s stake in De Beers to 85% thus joining venture with the Government of the Republic of Botswana (GRB) under an already existing entity called Debswana. Botswana has been hailed as a beacon of success and a model African state both politically and economically mainly due to its effective management of economic proceeds generated mainly through Debswana diamonds. Something that might be seen as a possible threat to this economic stability is the merger and acquisition (M&A) between the GRB and AA. As a result this study was conducted as a way of investigating any possible impacts of the partnership of GRB and AA on the Debswana diamond company through the M&A transaction that occurred in 2011. The study was restricted to the mining operations in order to assess Debswana‟s performance more meaningfully pre and post the acquisition of De Beers shares by AA. The mining activities from Debswana operations comprise of Letlhakane, Damtshaa, Orapa, Jwaneng and Morupule Coal mine. The study is focusing on the production statistics and financial analysis using stock market and financial ratios. These are discussed in detail to assess the possible impact of the merger on Debswana‟s performance. In addition to this, empirical evidence based on factors determining a firm‟s performance before and after acquisition or merger is also discussed, with further action of aligning determinants to the literature findings. The study‟s key findings were that there has been a significant reduction in AA‟s financial performance post-merger but Debswana‟s performance has been fairly consistent. This is probably due to the fact that the 3-year post merger window period may not be sufficient to observe sufficient changes in Debswana‟s performance. Further research can be conducted on the current AA‟s repositioning strategy that aims at divesting in other operations and focusing on others and its impact on Debswana over a much longer window period than 3 years.Item "A Critical and comparative analysis of the public interest case law jurisprudence of the competition tribunal of South Africa on large and notifiable mergers, since the enactment of the competition act no.89 of 1998(as amended)".(University of the Witwatersrand, Johannesburg, 2007-10-02) Zwane, Bhangase, Patrick, MzabalazoThe Competition Act no.89 of 1998 coupled with its amendments ushered in a new era in the competition analysis and merger approval process in South Africa. This research paper's purpose is to intimately explore the emergent doctrine of "public interest" institutionalized in this new dispensation of competition legislation. In particular this report places under the spotlight the treatment of public issues in case law jurisprudence as developed in the consideration and determination of large and notifiable mergers under the auspices of the competition tribunal of the Republic of South Africa since the inception of the said new legislative order. The efficacy of the determination of socio-political issues and pure competitive efficiency issues separately but under and by the same entity are also examined. The contrast between the South African approach to the application of the doctrine of the public interest and that of some other competition jurisdictions abroad is also explored.Item The measurement of post-acquisition performance in RSA using economic value added (EVA)(2014-01-02) Makhele, Amos TlaliThis study re-examines post-acquisition performance of acquiring firms in South Africa using Economic Value Add (EVA). Investigation of the 336 acquisitions occurring during 2000 to 2011 reveals that acquiring firms experience significantly deteriorating EVA after the completion of acquisitions. Further, this study evaluates the performance of other traditional accounting measures including Earning per share (EPS), Return on capital (ROC), Return of Assets (ROA) and Return on Equity (ROE) post acquisition. The results suggest that acquiring firms tend to experience slightly improved performance after completion of the acquisitions when using traditional accounting measures. But the improved operating performance is wiped out by capital costs of the large premiums paid to the target firm, creating no real economic gains to the acquiring firm‘s shareholders