The Nation Newspaper

Tag: merger

  • Renault, Nissan, Mitsubishi may discuss merger

    Car makers Renault, Nissan and Mitsubishi may discuss a merger later in the future, Jean-Dominique Senard, the Chief Executive Officer of the French car manufacturer said on Saturday.

    “These discussions over a capitalistic merger have been carried out for a while and they were brought out in a dramatic way recently. I think that later on, as events unfold, Renault, Nissan and Mistubishi will think about that with serenity,” Senard said in an interview with France Inter radio station.

    For now, the companies are working on ways to optimise their alliance, said Senard, who heads of it.

    Talks about a possible merger over the past days “have scared out everybody”, Senard said.

    The removal of Renault CEO Carlos Ghosn, credited with rescuing Nissan from near-bankruptcy in 1999, from the head of the alliance has raised a cloud of uncertainty about its future.

    As Nissan ponders its future without Ghosn, who is charged with financial misconduct, French partner Renault has been quietly manoeuvring for merger talks, sources at both automakers have recently told Reuters.

    Ghosn has denied all charges against him.

  • PDP summons governors, NEC members over merger, defection

    •Stakeholders reject change of name

    THE People’s Democratic Party (PDP) will today meet members of its Board of Trustees (BOT) and the National Executive Committee (NEC) on the party’s prospects in 2019 and the possibility of entering into alliances.

    Those expected for the talks are governors, former presidents, former vice presidents, ex-governors, Deputy Presidents of the Senate, ex-Speakers and ex-Deputy Speakers of the House of Representatives and principal officers in the National Assembly elected on the PDP platform.

    The meetings will focus on some issues, including the defection talks with Senate President Bukola Saraki, House Speaker Yakubu Dogara and others.

    The others include Governor Aminu Waziri Tambuwal (Sokoto), Governor Abdulfatah Ahmed (Kwara), Governor Samuel Ortom, ex-Governor Rabiu Kwankwaso, many senators and members of the House of Representatives, mostly in Reformed-All Progressives Congress(R-APC) and other defectors.

    It is the first time the party’s leadership will brief all its organs on what it has been doing ahead of the 2019 elections.

    There was tension last night over plans to arm-twist the organs to succumb to pressure to change the party’s name.

    Many members of the national Caucus, BOT and NEC were opposed to a change of name proposal, which is being promoted by those defecting from the All Progressives Congress (APC).

    It was learnt that today’s meetings were preceded by a session of the party’s national caucus yesterday night.

    On the agenda were: merger MOU with 38 parties; details of negotiation with defectors, demand for change of name by defectors, how talks will alter party structure at state level, report of Liyel Imoke Contact and Moblisation Committee, defining involvement in coalition with ex-President Olusegun Obasanjo’s Coalition for Nigeria Movement (CNM), parties, and other groups ahead of 2019 poll, inputs from stakeholders and fallout of Ekiti governorship election.

    As at press time, however, the controversial matter on the agenda was said to be plans by some PDP leaders to force the party to change its name.

    It was gathered that the change of name was one of the conditions given by PDP some of the influential defectors.

    While a few leaders were said to be buying into the idea of a name change, many members of the BOT and NEC have rejected it.

    A former governor said: “We have told the party to be circumspect because some of those defecting and insisting on change of name have a hidden agenda. They want to kill PDP technically in order to co-own the new party, which will emerge.”

    A member of the NWC said: “Change of name is a booby trap. Why will those rejoining our party be dictating to us. They need us more than we need them.  If change of name is their problem, let them remain where they are.”

    A governor said: “I think we have gone past the issue of change of name. To me, it is dead on arrival. Those who are uncomfortable with PDP should find shelter elsewhere. I don’t think the party will revisit this matter again.”

    PDP National Publicity Secretary Kola Ologbondiyan said: “We are meeting all the organs on all issues, including the MOU with parties, defection by some political leaders to our party, among others. The consultation has started with the national caucus on yesterday night. We will meet with BOT and NEC members on Monday (today).”

  • ‘Merger not solution to airlines’ challenges’

    Domestic airlines’ merger is not the solution to the  challenges operators are grappling with,  the Accountable Manager, DANA Air, Obi Mbanuzuo,  has said.

    Although the proposal has worked in other countries, according to Mbanuzuo, it still remains a mirage in Nigeria because carriers are too weak.

    Mbanuzuo, who spoke in an interview at the weekend in Lagos,  said airlines could collaborate in many areas while maintaining their individuality.

    He said airlines in Nigeria were too weak to exploit the merger option because the weaker partner in the deal could pull the other operator down.

    Mbanuzuo said operational partnership, by pooling equipment and personnel on some strategic routes, could enhance the capacity for many airlines.

    But the operational environment, he said, is not yet ripe for such arrangement because each carrier has its structural template for operations, which differs from airline to airline.

    He said there were more problems to be addressed in the sector beyond merging of airlines, adding that if the aviation sector must be positioned as a catalyst for economic development, the government should rework its policies to address challenges of inadequate infrastructure, including landing facilities at airports.

    Mbanuzo said: ”I do not think airlines merging is the answer to the problems of the industry. We have to find structural solutions to the problems.

    ”The merger proposal should generally be for two competitors. In this case, one partner or airline is bigger than the other or sees the other as a threat or as a complement to its operations.

    “For instance, if there was an airline flying mainly into the north ern parts of the country, we may decide to merge for a more pan- Nigerian airline. I think part of the reasons people are calling for merger is to make airlines stronger, but it will not  work.

    “Among the current operators, some of them are very weak, so when there is a merger, the weak one will pull the stronger down.”

    Citing some failed merger arrangements across the globe, Mbanuzuo insisted that operational co-operation among airlines was the way to go.

    He said: ”There are many cases around the world where merging of airlines  has not worked. Sometimes, airlines operate very closely but, they do not merge. Air France /KLM is a very good example. They still maintain their individual identities.”

    Mbanuzuo said airlines would perform better in Nigeria if operators and the regulator took a closer look at why the cost of operations was high.

    He said the regulator, Nigerian Civil Aviation Authority ( NCAA), should go beyond prescribing the number of aircraft an operator should have in its fleet and take steps to  stimulate policies that would drive passenger traffic.

    ”There are many other things to do in the industry, but people are not do them. In South Africa for instance, there are about 40 to 50 times the number of airplanes we have in Nigeria, but our gross domestic product is higher.

    “If you look at the industry currently in Nigeria, there are more than 10 million travelers per annum, but South Africa has about 70 million travelers on domestic travel alone.

    “Their civil aviation authority has about  500 workers regulating hundreds of airplanes, but in Nigeria the NCAA has over 1,000 workers regulating how many airplanes,” he said.

    He said through a deliberate policy, the government should make air transport attractive by reducing aeronautical charges to enable them reduce air fares.

    Mbanuzuo said: ”The first thing is to make the air transport industry a mass market because many Nigerians still look at it as something for the elite.

    “Air transportation is not for the elite. If you go back to history, the United States is the largest air transport market in the world though it is projected that in the next few years China will take over.

    “In the US, the advent of carriers like JetBlue Airways, which people say are low cost carriers, made a difference. We call them low cost carriers, but they are actually mass carriers. They compete  with other modes of transportation, including  road and rail because they can sell tickets to people, who go by rail or road to fly. “

    He said airlinescould attract more passengers, if there was a cost-friendly environment. He noted that with lower fares the passenger traffic could increase.

    He said : “ That is what we need to try here in Nigeria. How can an airline with the current policies operate that way?

    ”We can’t price against road operators. As an airline operator, I would like to sell some seats on-board each flight we operate for like N5, 000.

    “I would like to do that because it extends the market. We are 180 people; why should only 10 million be flying per annum?

    “Out of the 10 million, only about three million do multiple journeys; it is too small and not right. We could drive the industry higher than it is right now if we could drive price down.”

    He said airlines were grappling with many challenges including the huge cost of aviation fuel.

    The DANA Air boss said: “Nigeria is the fifth producer of crude oil in the world, yet we don’t refine our own aviation fuel. Petrol is subsidised, but aviation fuel is not. Currently we buy between N250 and N270 per litre and each one hour flight burns an average of 4, 000 litres, which is a lot of money.

    “An average aircraft will have about 100 to 120 seats which are not always full. Divide that with the cost of fuel. We prefer fuel to be refined locally because we believe it will drive prices down.”

    He added:” Well, many of our airports are not certified, except Abuja and Lagos.

  • Insurers embracing merger, acquisition, says report

    INsurers are turning to merger and acquisition (M&A) in their search for profit, a report by A. M. Best has shown.

    The report, was made available to The Nation in Lagos by the firm’s Director, Market Development & Communications, Dr. Edem Kuenyehia.

    1. M. Best, a global rating agency, stated that insurers were finding it difficult to meet their targeted returns, no thanks to poor underwriting performance and investment returns.

    It disclosed that the M&A market has been active in recent months, a trend, which A. M. Best expects to continue.

    It cited American International Group, which has announced plans to buy Validus Holdings, andAXA has unveiled its intention to acquire XL Group.

    Also, SoftBank has been contemplating taking a minority stake in Swiss Re. In addition, some groups are set to dispose of Lloyd’s operations, notably Sompo Holdings, which sold Canopius AG, to a private equity consortium and The Hanover, which is exploring a sale of Chaucer.

    Bolt-on deals have included Zurich, entering into an agreement to acquire Australian insurer QBE in Latin America and Qatar Reinsurance Company buying Markerstudy’s Gibraltar-based insurance companies, it added.

    The agency said: “Drivers contributing to the recent merger and acquisition activity include the perceived need to build scale and relevance, particularly in the reinsurance sector, which remains under pressure from alternative capital. The soft market conditions are making it difficult to generate strong underwriting returns, and the low interest rate environment is hindering companies’ ability to obtain acceptable yields from investment portfolios.

    “Smaller operations have typically been sold to peers with a stronger presence in a particular market, with buyers seeking to enhance their profile and performance. Furthermore, where companies have identified potential challenges to the sustainability of existing markets or business models, for example from technology, they are looking to diversify to reduce their exposure to these threats. In particular, changing distribution practices have made companies with either data driven technology or a focus on less commoditised specialty business attractive.

    “Some insurers are taking advantage of relatively inexpensive borrowing to finance deals, while in other cases; M&A represents a means for cash rich buyers to deploy excess capital. A.M. Best notes that private equity backed buyers are especially active as they have excess capital and fierce competition between these participants are driving price multiples higher.”

     

    Post-acquisition strategies

    A.M. Best notes there are various strategies deployed in post-acquisition and that they are related to the original motivation for the deal.

    “For example, when similar businesses merge, the intention tends to be to increase scale and relevance in existing markets; therefore, the focus is on realising expense synergies and economies of scale. There will also be an effort to minimise any loss of business, but at the same time ensure that where there is overlap, exposures remain within tolerance. A.M. Best believes that this type of consolidation can be positive as it tends to enhance the position of the company in the insurance value chain, although there are obvious risks associated with execution.’’

    It continued: “In cases where the business of the acquired entity differs considerably to that underwritten by the buyer, the acquired management team is usually kept in place. This has been evident over the past few years in deals involving large Japanese groups buying London market or Bermudian entities. The acquired entity is also more likely to maintain a significant degree of independence. This can allow the takeover target to retain some of the advantages of being a smaller organisation – for example, it can be nimble and potentially more innovative, while benefiting from parental protection and access to the parent’s often large capital base.

    “Finally, in situations where the acquirer is looking to accelerate growth in a market where it has a small presence, the acquired entity is more likely to retain its own identity and brand motivations and likely patterns in future deal-making

    “A. M. Best expects the drivers and market dynamics behind recent deals to remain and that consolidation will continue, particularly for smaller insurers, as it becomes increasingly difficult to achieve acceptable returns on capital. As retail business and the smaller end of the commercial market become increasingly commoditised, largely due to the increased use of technology, companies that have access to and the ability to underwrite more complex specialty business are proving attractive.

    “Additionally, data and analytical capabilities are becoming more important; therefore, companies that add value here are likely to become takeover targets. Other qualities that make an insurer desirable include strong management teams, diversifying portfolios and associated capital efficiencies, as well as access to business and technology.

    “Buyers will seek to avoid potential unforeseen legacy issues and exposures that are outside their risk appetite. Challenges in the M&A environment are diverse and include overpaying, which could erode shareholder value, as well as execution risk on the integration of staff and systems, potential loss of talent and the alignment of different cultures,” it stated.

     

  • Skyways Aviation MD seeks airlines, firms merger

    The Acting Managing Director of Skyways Aviation Handling Company Limited ( SAHCOL), Basil Agboarumi, has canvassed cooperation and merger among airlines and ground handling companies.

    This, he said, will enable them benefit from economies of scale as well as have an enhanced customer experience in the business where isolation is no longer fashionable.

    In an interview in Lagos, Agboarumi said rather than engaging in unhealthy competition, ground handling companies should consider ways to assist one another in improving the quality of services to passengers, airlines and others.

    On airlines, he said merging would reduce cancellations and delay of flights.

    Agboarumi said such partnership by airlines would increase passengers’ confidence and reduce loses associated with individual carriers running unprofitable operations.

    He called on the Nigerian Civil Aviation Authority (NCAA) to create an enabling regulatory environment to foster such mergers.

    The  SAHCOL boss said cooperation, mergers and alliances were the operational models adopted by global companies to have the cutting edge.

    He said: “Where the world is going in aviation is cooperation, you can’t stand alone. As long as you have something to offer in aviation, the time has come whereby stakeholders in the industry must begin to relate with one and other and jointly take decisions that can move the industry forward.

    “Cooperation is for the best of the industry, we as a company we have identified cooperation as the tonic to build the industry. We will continue to do our best, take the right step and initiative to ensure that what can give us the kind of aviation that we desire in the future is done. there must come to a point whereby we will definitely need ourselves.

    “In other parts of the world, ground handling companies are pooling resources. It is for us to get to that maturity stage. Even, airlines are cooperating now. When you have airlines in various parts of the world, they complement each other in passenger and cargo operations. We will have better aviation industry once we begin to look at the industry from that perspective.”

    He expressed optimism that the proposed national carrier would contribute to the growth of the sector.

    His words: “Now, we are talking of having a national carrier, which we believe will be good for our aviation industry. We have come to a point where we have to realise that there is no Nigeria aviation, but global standards. That is why you see regulators that visit us regularly to determine our level of compliance. It means that we must do things in line with international best practices. “

  • World largest brewer concludes merger of Nigerian subsidiaries

    World largest brewer concludes merger of Nigerian subsidiaries

    •Lists shares on NSE

    Anheuser-Busch InBev-world’s largest brewer yesterday completed the merger of its Nigerian businesses with the listing of the consolidation shares on the Nigerian Stock Exchange (NSE).

    Three indirect Nigerian subsidiaries of Anheuser-Busch InBev-International Breweries Plc, Intafact Beverages Limited and Pabod Breweries Limited were merged through a scheme of merger with International Breweries subsisting as the post-merger company.

    A total of 5.302 billion ordinary shares were listed yesterday in the name of International Breweries. The additional shares arose from the scheme of merger involving International Breweries, Intafact Beverages Limited and Pabod Breweries Limited.

    With the supplementary listing of 5.302 billion ordinary shares, the total issued and fully paid up shares of International Breweries increased from 3.294 billion to 8.596 billion ordinary shares.

    Under the arrangements for the business combination, International Breweries issued 5.302 billion ordinary shares of 50 kobo each to shareholders of Intafact and Pabod. Intafact had total issued shares of 1,400 ordinary shares of N100,000 each while Pabod had 4.0 billion ordinary shares of N1 each.

    The share exchange ratio indicated that 29.09 million ordinary shares of International Breweries were exchanged for 10 ordinary shares of Intafact while 3,071 ordinary shares of International Breweries were exchanged for 10,000 ordinary shares of Pabod.

    With the business combination, Anheuser-Busch InBev’s majority equity stake in International Breweries Plc, has increased to 75.1 per cent. The merger was seen as a major strategic move by Anheuser-Busch InBev to upend competition and consolidate its Nigerian base for further expansion into the Sub-Saharan Africa (SSA).

    Under the arrangement, all assets, liabilities and undertakings of Intafact and Pabod including employees, real property and intellectual property rights were transferred to International Breweries upon the completion of the proposed merger.

    Prior to the merger, Anheuser-Busch InBev held 72.17 per cent majority equity stake in International Breweries through its subsidiary-Brauhaase International Management GMBH. After the business combination, Anheuser-Busch InBev’s majority equity stake increased to 75.1 per cent.

    SABMiller Nigeria Holdings BV-a subsidiary of Anheuser-Busch InBev had held 75 per cent and 82.81 per cent majority equity stake in Intafact and Pabod respectively. Ministry of Finance of Anambra State held 10 per cent equity stake in Intafact while Ministry of Finance Incorporated of Rivers State held 14.52 per cent equity stake in Pabod.

    After the merger of the three companies-SABMiller Nigeria Holdings BV and Brauhaase International Management GMBH-two subsidiaries of Anheuser-Busch InBev, now hold 47.4 per cent and 27.7 per cent equity stake respectively in International Breweries, giving the foreign majority core investor controlling equity stake of 75.1 per cent. Ministry of Finance of Anambra State now hold 4.7 per cent equity stake while other minority shareholders now hold the remaining 20.2 per cent equity stake.

    The merger is believed to be a major competitive move by Anheuser-Busch InBev to give its operations a major nationwide push to increase its market share. International Breweries is located in Ilesa, Osun State in the South West region. Intafact Beverages’ brewery is ssituated in Onitsha, Anambra State in the South-East region while Pabod Breweries is located in Oginigba, Port Harcourt, Rivers Sate in the South-South region.

  • ‘APDA not in merger talks with PDP’

    ‘APDA not in merger talks with PDP’

    The Advanced Peoples Democratic Alliance (APDA) is not in “merger talks” with other political parties, its leadership said yesterday.

    In a statement, the group said: “It is not lost on APDA that some persons with their consorts who continue to nurse hidden but illicit interests in APDA, as bargaining foil for their nothing but egotistical agenda for leadership of the PDP, are crafting masterminds of the purported “merger talks.”

    APDA categorically declares to the world that the craftsmen with their supporting cast of the “merger talks” are engaging themselves in strategic tacit deception, to hoodwink the public against the Party by the alleged “merger talks,” they are declaring to Nigerians they have no credible packages to offer Nigerians.

    We want to urge Nigerians to dicontinuance this fabricated lies because APDA is not aware of and not interested in the purported “merger talks” with the PDP.

  • ‘APDA not in merger talks with PDP’

    ‘APDA not in merger talks with PDP’

    The Advanced Peoples Democratic Alliance (APDA) is not in “merger talks” with other political parties, its leadership said yesterday.

    In a statement, the group said: “It is not lost on APDA that some persons with their consorts who continue to nurse hidden but illicit interests in APDA, as bargaining foil for their nothing but egotistical agenda for leadership of the PDP, are crafting masterminds of the purported “merger talks.”

    APDA categorically declares to the world that the craftsmen with their supporting cast of the “merger talks” are engaging themselves in strategic tacit deception, to hoodwink the public against the Party by the alleged “merger talks,” they are declaring to Nigerians they have no credible packages to offer Nigerians.

    We want to urge Nigerians to dicontinuance this fabricated lies because APDA is not aware of and not interested in the purported “merger talks” with the PDP.

  • Standard Alliance concludes merger

    Standard Alliance Insurance Plc has completed its business merger with Standard Alliance Life Assurance Limited  by issuing 917.86 million ordinary shares to shareholders of Standard Alliance Life Assurance Limited to take over all assets and liabilities of the firm.

    According to the scheme of merger, five ordinary shares of Standard Alliance Insurance were exchanged for seven ordinary shares of Standard Alliance Life Assurance Limited.

    The additional 917.86 million shares have been listed on the NSE, increasing the total issued and fully paid up shares of Standard Alliance Insurance from 11.99 billion to 12.91 billion ordinary shares.

     

     

  • Can PDP/Accord merger work in Oyo?

    Can PDP/Accord merger work in Oyo?

    The Peoples Democratic Party (PDP) in Oyo State is trying to reposition itself, following its defeat in last year’s polls. Its proposed accord with the Accord Party (AP) may herald a realignment of opposition forces, ahead of 2019 elections, reports BISI OLADELE.

    The Oyo State People’s Democratic Party (PDP) is projecting into 2019. The crisis-ridden chapter is trying to put its electoral defeat behind it by taking  actions that may forestall another electoral calamity. Its leaders have swallowed their pride. They are now reaching out to a former chieftain, Senator Rashidi Ladoja, who is the leader of the Accord Party (AP) in the state. They are appealing to the former governor to return to the party, in a bid to rebuild it ahead of the 2019 elections.

    In their view, only a re-energised PDP can confront the All Progressives Congress (APC), led by Governor Abiola Ajimobi, at the polls. Their decision, according to sources, was hinged on the results of the 2011 and 2015 elections. The popular thinking is that the PDP and the AP lost because they refused to work together.

    In the 2011 election, then Governor Adebayo Alao-Akala was the PDP candidate. Other factions  worked against the success of the party. While PDP chieftains pretended to have supported him,  they secretly supported other parties.

    A strong and major faction, led by Ladoja, had opted out to join the Accord Party in 2010. Ladoja, who is its leader and its governorship candidate, contested with Ajimobi of the defunct Action Congress of Nigeria (ACN) and Alao-Akala of the PDP. Ajimobi defeated them at the poll.

    The crisis that rocked the PDP got worse during Ajimobi’s first term.  In 2015, the PDP had further split, with the Alao-Akala faction defecting to the Labour Party (LP) and the Wole Oyelese and Seyi Makinde groups defecting to the Social Democratic Party (SDP). Thus, while there were only three strong candidates in the 2011 governorship election, two of who were originally PDP members – Ladoja and Alao-Akala – additional two PDP candidates emerged in the last year’s election. While former Senate Leader Teslim Folarin flew the PDP flag, Makinde flew the SDP flag.

    As ource, who hinted about the proposed PDP/Accord deal, said: “Now that they have tried it twice individually and realised the futility of personal efforts, they are coming back to bring Ladoja back into the party to strengthen it.” The source, an Accord Party chieftain, said the deal can work, if there is commitment.

    Throughout the years of division, which plunged the party into electoral woes, Ladoja and Alao-Akala remained the most significant candidates, trailing Ajimobi at the polls.  But Alao-Akala has since joined the APC after losing in the 2015 election.

    In the new realignment, according to sources, are Folarin, former Minister of Federal Capital Territory (FCT), Jumoke Akinjide and Senator Ayo Adeseun. They are determined to re-integrate Ladoja into the party and possibly hand over the leadership to him.

    Why the alignment?

    A reliable source in the PDP explained that the party has managed to remain popular party in the state, adding that,  if its scattered members can come together, it can spring a surprise.  The source stressed: “Let me tell you that our party (PDP) is the single largest party in Oyo State. The failure to harmonise our personal interests has been responsible for the division which seems to have weakened the party. But now that we are coming together, and with determination, you will see that we will regain our strength and send the APC packing in no time.”

    The Nation learnt that the PDP leaders chose to swallow their pride on realising that their political future was bleak, if they remained factionalised. Having lost at the federal level, and not willing to join forces with the APC because of differences, they concluded that no individual can survive on its own, except he join forces with like minds to present a formidable platform that has the capacity to win election. “It is better to have the hope of gaining power in the future than having no hope, no matter how great one’s personal strength is,” a source said.

    Another PDP chieftain said: “Our options are not many. It’s either we come together and win elections or we don’t come together and lose.”

    The current dynamics in the APC a also play a role in forcing PDP members to consider realignment. Ajimobi’s second term will expire in 2019. The PDP is planning to produce his successor.

    Also, there is no other major figure in the APC that can be regarded as a ‘Governor-in–waiting.’ If Senator Olufemi Lanlehin had remained in the APC, eyes would have been on him as a likely successor.  It is not clear if any of the three serving senators has governorship ambition. Indeed, they are not perceived as men of strong candidates by the PDP.

    Among the six ACN governorship aspirants in 2011, only two of them, Soji Akanbi, who is now a senator and Dr Bayo Adewusi, who recently returned to the APC from the Accord Party, are keen.

    In the view of PDP leaders, it is important at this time to bring the juggernauts together under a strong umbrella to prepare for a victorious run against the APC in the 2019 elections.

    Also, the PDP believes that the poor financial situation of the state foisted by dwindling federal allocations has affected governance and the PDP can make it a campaign issue and ride on it to regain its acceptance.

     

    Challenges

    As in other human efforts, the re-alignment will face some challenges from Ladoja and his party, the ruling APC.  Another factor is the public perception of the PDP, owing to its inglorious past in the state.

    The first major challenge against the alignment is likely to come from Ladoja and his followers. The former governor and his followers see themselves as a huge force to reckon with in the state. For this reason, Accord is likely to present terms that will give it more privileges over others. The party will most likely ask for the overall leadership to be ceded to Ladoja and insist on primary for all positions, believing that it has more members and also enjoys more support among the people than the PDP.

    This position will partly be strengthened by the fact that Ladoja and his followers left the PDP for Accord in 2010. Ladoja was illegally impeached and his deputy, Alao-Akala, worked against him during the preparations for  the 2007 elections. The party ditched Ladoja for Alao-Akala, the latter having been endorsed by the strongman, the late Chief Lamidi Adedibu, during the crisis that seized the party.

    Ladoja is opposed to the PDP’s style of leadership. He will likely present terms that will allow him to control the party as he currently does in the Accord Party. But, that may not go down well with other PDP members.

    Also, should the realignment show signs of success, the APC will likely ensure that those who defected from the PDP are rewarded to prevent them from going back.

    The APC is also likely to make moves to attract more PDP members to further strengthen its own popularity, ahead of the next election. If the alignment succeeds, the party will also face the burden of acceptance after disappointing the people when it led the state twice in the past.

    When the PDP was in power between 2003 and 2007, Oyo State under former Governor Ladoja was plunged into chaos. It was difficult for Adedibu to control Ladoja.  The protracted crisis led to the rise of many miscreants, particularly in Ibadan, many of who inflicted violence on innocent people.

    The culture of violence continued, and even grew worse, when Alao-Akala governed between 2007 and 2011. If the on-going corruption allegations against PDP national figures is added, the party faces a tough hurdle of gaining acceptance from the people of the state.

    Prospects of re-alignment

    Politicians are die hard optimists. They can work out possibility out of difficult situations. Therefore, the PDP and the Accord Party may surmount the challenges. Having lost elections twice, and with the current stain on the PDP’s name at the national level, gladiators may not find it difficult to drop personal ambitions.

    If it succeeds, the new PDP will obviously put the APC on its toes. It will also force the APC to present its best candidates in the next election. The re-alignment may toughen the political space.

    Former House of Representatives Majority Leader Hon. Mulikat Adeola-Akande applauded the proposed merger. She said it should be given a trial, adding that it may change the face of the opposition in Oyo State.

    As stakeholders await the workability of the merger talks, the political space remains fluid for participants to reshape the road to 2019 elections in Oyo State.