The merger of The Royal Bank of Scotland (RBS) and National Westminster Bank (Nat West) as well as other major British banks including Barclays and Woolwich Building Society has created major economical and social interest boasting scholarly debate (Papers4you.com, 2006). It is important to understand why such mergers take place and the potential gains of doing so. The RBS and Nat West merger was formed in delivering Nat West from inefficiencies of poor services originally formulated from the merger bid proposed by the Bank of Scotland. Nat West will benefit from the forward thinking impact present at the RBS Group.

The entrepreneurial spirit will help the bank as well as the whole merger to move forwards in a highly competitive market simultaneously maximising customer satisfaction - a major key to survival in this industry. Impact on shareholders during the merger or discussion process can vary bringing about instability and lack of confidence. Following the completion of the RBS