Banking M&A Digest #101 (19.11.2020)

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Corporate Financier’s Notes by Aivars Jurcans

Done! And Done

Deutsche Borse has agreed to buy an 80% stake in Institutional Shareholder Services, a shareholder advisory group, in a deal that values it at EUR 1.9 billion. ISS advises more than 4,000 asset managers and expects to record revenues of USD 280 million and a 35% profit margin in 2020.

Source: FT

Banco Santander has agreed to buy the core business of Wirecard (which includes Wirecard Bank and a few smaller German subsidiaries). The price is said to be about  EUR 100 million.

Source: FT

Nexi, an Italian payments company, has agreed on a EUR 7.8 billion merger with Nets, a Nordic rival, to create a group with pro forma 2020 revenue of EUR 2.9 billion and core profit of EUR 1.5 billion.

Source: Reuters

PNC has agreed to buy the US operations of BBVA, a Spanish bank, in an all-cash deal for USD 11.6 billion. The deal will create the 5th largest US bank by assets. The transaction values the target at nearly 20x times trailing earnings.

Source: FT

Deals On The Table

The Co-operative Bank, a UK lender, is said to have received a takeover approach from Cerberus, a US private equity firm. 

Source: FT

BBVA and Sabadell, a smaller Spanish lender, are said to be “in talks” over a potential merger. Sabadell’s shares are trading at 0.2x times book value.

Source: Reuters, FT

Up-and-Comers

Lufax, a Chinese fintech backed by Ping An (an insurance company), has raised USD 2.4 billion in an IPO. The shares were priced at the top end of the range; the IPO valued the company at almost USD 33 billion.

Source: FT

Exciting Numbers

Total credit card loans held by US banks stood at USD 755 billion in the last week of October, USD 100 billion lower than when the pandemic took hold.

Source: FT

A Thought Worth Noting

“Banks are not pulling back credit like they did [during the financial crisis] to save themselves at the expense of the broad economy. That is a good thing, we can give them a gold star and a pat on the back, but we should also remember this is part of their job. Banks are supposed … to absorb and not amplify shocks and downturns to the economy.”

Carolyn Rogers, secretary-general, Basel committee of regulators

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Aivars Jurcans has more than 20 years of corporate finance and investment banking experience. His services are currently available through MURINUS ADVISERS.

Design by Artis Briedis, Photo by Joe Taylor on Unsplash

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