Corporate Financier’s Notes by Aivars Jurcans
Done! And Done
UBS, a Swiss bank, has agreed to sell its domestic Austrian wealth management business to LGT, a Liechtenstein-based private bank. The terms of the deal were not disclosed. The business has under EUR 5 billion in managed assets and some 60 employees.
Bain Capital, a private equity group, has agreed to acquire LV, a UK mutually owned life insurer, in a GBP 530 million deal. The price tag values LV at 0.9x times own funds which is a measure of the equity that members hold in the business.
Huntington Bancshares, a US regional lender with a market value of about USD 13 billion, has agreed to acquire TCF Financial, another regional bank, in an all-stock transaction that values TCF at roughly USD 6 billion. Combined, the banks will have about USD 168 billion in assets.
Aviva, a UK insurer, has agreed to sell its Vietnamese life insurance business to ManuLife, a Canadian insurer. The price for the cash sale was not disclosed.
Zurich Insurance, a Swiss insurer, has agreed to buy MetLife’s property and casualty insurance business for USD 3.9 billion. The deal will combine the 7th ad 18th largest property and casualty insurance businesses in the US, creating a new number 6 in the market.
Deals On The Table
Ameriprise Financial, a Minneapolis-based wealth adviser with more than USD 900 billion under management or administration, CI Financial and private equity firms GTCR and Reverence Capital Partners are said to be weighing 2nd round bids for Wells Fargo asset management arm. The division is expected to fetch more than USD 3 billion.
Oaktree Capital Group is said to have increased its offer for Dewan Housing Finance Corp, a bankrupt Indian shadow lender which was seized by the central bank in 2019, to USD 5 billion. Before its downfall Dewan had a loan book of about USD 12 billion.
State Street Corp, a US custodian bank, is said to be “exploring options” for State Street Global Advisors, its asset management business, including a merger with a competitor.
Group Macif, a mutual insurer, is said to be looking to submit an offer to buy Aviva’s French arm in a deal worth about EUR 3 billion. The auction is said to have drawn interest also from Axa, Banque Postale and Generali.
Banca Intermobiliare, an Italian lender, is said to be “in exclusive talks” to buy Banca Consulia, a financial consulting bank. The exclusivity period is said to run until January 15 with the aim to present a binding offer.
Banco BPM and BPER Banca, two Italian lenders, are said to be considering a possible merger with a view to reaching a deal in H1 2021. Banco BPM is valued at around EUR 2.8 billion while BPER market value is EUR 2.1 billion.
The Money Trail
Massachusetts Mutual Life Insurance is said to have bought USD 100 million of bitcoin for its general investment account.
Tink, a Swedish fintech which runs open banking platforms, has raised EUR 85 million in a funding round that gave it a valuation of EUR 680 million.
Vestrata, a fintech backed by former JPMorgan executives, has raised USD 4 million from employees, friends and undisclosed industry backers. The company intends to provide access to investment products, advice, portfolio analytics and risk management services aimed at helping wealth managers and private banks to improve client engagement.
According to Goldman Sachs, special purpose acquisition companies (SPACs) have raised USD 70 billion in 2020 and could lead to USD 300 billion in M&A over the next 2 years.
A Thought Worth Noting
“I think some of the stakeholders or market participants believe that nothing will change [after Brexit]. And we have been at pains to say, in every sector including the financial sector, that nothing will stay the same as it is now, and [to] prepare for change.”
Mairead McGuinness, the European Union financial services commissioner
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