Efficiency of Mergers and Acquisitions (M&A): The Case of Greek Banks

This study investigates the efficiency and value creation outcomes of mergers and acquisitions (M&As) in the Greek banking sector amid the turbulent period of 2012–2013. Combining a comprehensive review of international M&A literature with empirical analysis of four major bank acquisitions—Alpha Bank, Eurobank, Piraeus Bank, and National Bank of Greece—this research examines both short-term market reactions and long-term financial and operational performance. The findings reveal a persistent asymmetry in shareholder gains, with target firm shareholders benefiting significantly, while acquiring bank shareholders realize limited or statistically insignificant returns. Furthermore, key profitability and efficiency metrics, including Return on Assets (ROA), Return on Equity (ROE), and Cost-to-Income ratios, show no sustained improvement post-acquisition, underscoring the challenges of achieving synergy in crisis-driven consolidations. The study concludes that Greek banking M&As during this period were largely reactive measures driven by systemic distress and regulatory imperatives rather than strategic value maximization. Implications for policy and future research emphasize the critical role of integration quality, cultural fit, and comparative cross-country analysis in understanding post-merger success in distressed financial sectors.