CASE ANALYSIS: WELLS FARGO- NORWEST MERGER OF EQUALS (A) Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

CASE ANALYSIS: WELLS FARGO- NORWEST MERGER OF EQUALS (A) Case Solution

Introduction

Wells Fargo was the oldest bank situated in California and had spread its business all across the United States and internationally. Moreover, Wells Fargo was operating the largest Consumer Banking business in the industry all over the US having a strong retail network of staffed services exceeding 4,400 round the clock ATMs and 24-hour telephone banking services. The business was also supporting small businesses in order to support them financially while the company was also financing agribusinesses and other small and medium scale businesses. Moreover, the company was also managing and maintaining mutual funds which worth more than $23 billion.

Furthermore, Wells Fargo was known as the most convenient service provider among the consumer banking industry in the United States and other regions.In addition to this, the company was growing at a rate of 10% as well as the company showed a tremendous performance even at that time when all of its peers were facing a stagnant business and Wells Fargo was still growing and was gaining more market share and customers

The company was earning a very high amount of revenue as its revenue was $4.6 billion in 1997 and it was $4.5 billion in 1996. Moreover, the company’s profitability was also high as it had 33% of net profit as of its revenue in 1997.
On the other hand, Norwest was also one of the largest banks and it was ranked 11th among its peers in 1997, the rating was given to the Norwest bank due to the amount of its assets. The company was working on a vast range of financial services ranging from consumer banking to mutual funds and consultancy services.
Moreover, Norwest also had a high amount in its assetswhich was almost $88.5 billion whereas;it had 3,828 retail stores spread across 50 states in the United States. From the statement, we can easily estimate the financial position of the companies and in the next section, which will be the problem statement, we will discuss the main issues which the companies may face and what will be the consideration for the companies in future. We will also discuss the present consideration and ideas on which both the companies are working.

Problem Statement

Wells Fargo and Norwest which were two huge banks working in the United States were considering an idea of merger which would allow them to capture more market share, and also allow them to increase their market reach and customer service.
Moreover, the deal will also enable both of the companies to increase their revenue, profitability, shareholders’ equity and goodwill. Both of the companies were major players among the banking industry having several services with in the consumer and corporate sector.

In addition, Wells Fargo was the oldest bank situated in California and it had spread its business all across the United States and internationally. Moreover, Wells Fargo was operating as the largest consumer bank in the industry all over the US having a strong retail network of staffed services exceeding 4400 round the clock ATMs and 24-hour telephone banking services.
Furthermore, the business was also supporting small businesses in order to support them financially while the company was also financing agribusinesses and other small and medium scale businesses. Moreover, the company was also managing and maintaining mutual funds which were worth more than $23 billion......................

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