Banking M&A Digest #133 (15.7.2021)

Posted by

Corporate Financier’s Notes by Aivars Jurcans

Done! And Done

Phoenix Group, a British insurer, has agreed to sell Ark Life Assurance to Irish Life Group for EUR 230 million. Ark Life, which manages heritage savings and protection products in Ireland, has GBP 1.8 billion in assets under management.

Source: Reuters

Citigroup has agreed to sell its operations in Venezuela to Banco Nacional de Credito. The details of the deal were not disclosed.

Source: Bloomberg

Google has agreed to buy 87% of shares in Pring, a Japanese payments business. Metaps, one of the selling shareholders, has confirmed that it is selling its 45% stake for USD 44 million.

Source: Reuters

Vanguard, a Pennsylvania-based asset manager with roughly USD 7.9 billion worth of assets under management, has agreed to acquire Just Invest, a California-based wealth management boutique that has developed a customisable direct indexing offer. Founded in 2016, Just Invest manages about USD 1 billion of assets. The financial details of the deal were not disclosed.

Source: FT

Caixabank, a Spanish lender, has agreed to sell a unit that processes payments for retailers to Comercia Global Payments (a local unit of Global Payments) for EUR 260 million and a pre-paid card business to Global Payments MoneytoPay for EUR 17 million. 

Source: Reuters 

Pollen Street Capital, a UK private equity firm, has taken a 10% stake in Bunq, a Netherlands-based challenger bank, for EUR 193 million, valuing it at EUR 1.6 billion. Bunq offers online banking services in 30 markets and has passed EUR 1 billion in user deposits in 2021.

Source: Reuters

Deals On The Table

Nordax Bank, a Swedish lender, is said to have offered an improved bid to buy Norwegian Finans Holding, an Oslo-listed owner of Bank Norwegian, in a cash transaction valued at USD 2.23 billion.

Source: Reuters

Sumitomo Mitsui Financial Group is said to be planning to buy 5% of Jefferies Financial Group shares for around USD 380 million. 

Source: Reuters

Paytm, a digital payments services provider, is said to be considering raising about USD 268 million in a funding round before its initial public offering. The company was last valued at USD 16 billion. 

Source: Bloomberg

National Australia Bank is said to be “in advanced discussions” to buy Citigroup’s Australian retail assets, valued at more than USD 1 billion.

Source: Bloomberg

The government of India is said to be proceeding with its plans to list Life Insurance Corp, a state-run insurer. A listing could potentially value LIC at as much as USD 261 billion. 

Source: Bloomberg

Circle, a payments infrastructure provider for digital currencies and a USD Coin issuer, is said to be planning to go public in a blank-cheque merger deal that values it at USD 4.5 billion. According to the company, the global circulation of USDCs has grown more than 3,400% since January 2021 to almost USD 26 billion worth of coins.

Source: FT, Reuters

Bullish Global, a crypto group backed by Peter Thiel, is said to be planning to list through a Spac deal. The deal values Bullish at around USD 9 billion.

Source: FT

Metrics To Watch

Goldman Sachs’s annualised return on equity for Q2 2021 was 23.7%, ahead of the 14% medium-term target laid out in 2020.

Source: FT

Up-and-Comers

Klarna, a Swedish payments firm, has acquired Hero Towers, an e-commerce technology firm which is said to connect online shoppers with retail workers via text messages, videos and online chat rooms. It is estimated that Klarna will pay about USD 160 million. 

Source: Reuters

Younited, a French fintech, has raised USD 170 million from a group of investors. Younited offers personal loans to individuals and works with companies who want to offer their customers credit products.

Source: Reuters

Exciting Numbers

The market of decentralised finance (“DeFi”) has grown from about USD 15 billion at the start of 2021 to USD 65 billion, according to JPMorgan research.

Source: FT

A Thought Worth Noting

“The biggest change we’ve seen in the last year is that crypto has got big enough for regulators to care.”

Sam Bankman-Fried, chief executive, FTX

To receive your personal weekly copy of Banking M&A Digest please subscribe at http://eepurl.com/gepqdP

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

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s