Banking M&A Digest #112 (11.2.2021)

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Corporate Financier’s Notes by Aivars Jurcans

Done! And Done

Tyler Technologies, a provider of emergency management and other software programs, has agreed to buy NIC, a payments company, for about USD 2.3 billion. NIC provides digital services that help citizens make secure payments to the government, renew licenses and submit business filings.

Source: Reuters

Allianz, a German insurer, has agreed to buy the 49% stake it doesn’t already own in Allianz China Life Insurance Co from Citic Trust, its Chinese JV partner. The amount of the deal was not disclosed.

Source: Reuters

UBS has agreed to launch a USD 4.43 billion share buyback program where it will buy up to 10% of its registered share capital.

Source: Reuters

Deals On The Table

Standard Bank is said to be interested in buying shares it doesn’t already own in its Angolan unit. 

Source: Bloomberg

Piraeus Bank, a Greek lender, is said to be preparing for a capital increase of as much as EUR 1 billion that will reduce the state’s stake. The Greek bank recapitalisation fund currently holds a 61.3% stake in the bank.

Source: Bloomberg

BPCE, a French cooperative bank, has made a formal offer to buy out minority shareholders of Natixis, a corporate and investment bank. The cash offer of EUR 3.7 billion gives the group a market value of EUR 12.3 billion. 

Source: FT

UniCredit is said to be prepared to consider Monte dei Paschi, a state-owned lender, among its options for growth but “will only pursue a takeover that is in the interest of all of its shareholders”.

Source: Reuters

Thanks, But No Deal

Wells Fargo is said to have opted to keep its private-label credit card unit after reaching out to potential buyers in 2020. 

Source: Bloomberg

Metrics To Watch

Societe Generale’s share price decreased by 42% in 2020 and the bank has been trading at a price-to-book ratio of about 0.25x, the lowest of any European bank.

Source: FT

Deutsche Bank expects its cost-to-income ratio to drop 18 percentage points to 70% in 2022, as it shrinks.

Source: FT

Exciting Numbers

According to Campden Wealth, financial consultants, in 2019 there were 7,300 single family offices in the world (38% more than in 2017), controlling almost USD 6 trillion. Meanwhile the hedge fund sector is thought to control USD 5 trillion, although there may be some double counting here.

Source: FT

A Thought Worth Noting

“It’s clear that this pandemic has accelerated the client’s digital expectations, and the need for technology investment. That need has been accelerated by at least 3 if not 5 years. That requires far greater investment by financial firms. And those that have the scale will benefit from it the most.”

Ralph Hamers, chief executive, UBS

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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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