Mergers and acquisitions have been pronounced and adopted with the
profound need to combat the economic crisis and neutralize the
detrimental effects of the COVID-19 pandemic. The uncertainty and risks
involved in undertaking business operations have rapidly given rise to
the strategic and systematic execution of cost-cutting measures and
survival techniques. Mergers and acquisitions are one of the most
effective strategies for the survival of a company through the creation
of synergies and leveraging on economies of scale. The aim of the study
was to establish the economic impacts of mergers and acquisitions in the
corporate world. The study specifically sought to analyze and determine
the extent to which mergers and acquisitions affect the selected
variables constituting market share, shareholders' wealth, portfolio
diversification, employment, and economies of scale. The analysis
apparently observed that mergers and acquisitions have no significant
impact on shareholders' wealth in the short run, as indicated by stock
price movements, despite commanding an extensive customer base and
market share, reduction of operation costs based on economies of scale,
and mitigation of financial risks through portfolio diversification. The
corporate employees always impede any kind of mergers and acquisitions
due to the uncertainties and apprehensions associated with their
engagements and organizational culture pitting them against the
conventional narrative that change is inevitable.