Mergers and Acquisitions as a Form of Consolidation in the Banking Sector: Features and Problems

This article covers the theoretical aspects of mergers and acquisitions. Since mergers and acquisitions are integration processes, it becomes a necessary tool for a dynamically developing business. Mergers and acquisitions transactions allow increasing the value of a business, creating an effective and competitive product, and obtaining unique competitive advantages.

Particular attention is paid to mergers and acquisitions as a form of consolidation in the financial sector, including commercial banks, and the features and motives of consolidation are identified. In this regard, such concepts as “consolidation”, “concentration”, “centralization” are defined. The processes of mergers and acquisitions in the financial system of the Republic of Kazakhstan are considered: an analysis of some mergers and acquisitions transactions in the financial sector of the Republic of Kazakhstan is conducted.

 To identify the characteristic features of these processes in the Republic of Kazakhstan, we analyzed such significant transactions as the integration of JSC “Kazkommertsbank” with BTA Bank in 2014 and the voluntary reorganization of JSC “Kazkommertsbank” in the form of a merger with JSC “Halyk Bank” of Kazakhstan in 2018.

 In our opinion, the deal regarding the purchase of a controlling stake in Hepsiburada by JSC “Kaspi.kz” in January 2025 is of interest. The analysis presents the main financial indexes of the participating banks before and after the deal, identifies the reasons for the change in indexes, and calculates the synergy of the JSC “Kaspi.kz” deal.

The author’s conclusions are presented on the solution of existing problems in mergers and acquisitions in the financial sector.

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