Banking M&A Digest #156 (23.12.2021)

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Corporate Financier’s Notes by Aivars Jurcans

Done! And Done

BNP Paribas has agreed to sell Bank of the West, a California-based lender, to BMO Financial, a Canadian bank, for USD 6.3 billion in cash. The deal values BancWest at 1.7x times its tangible book value.

Source: FT

Schroders, a UK money manager, has agreed to buy a 75% stake in Greencoat Capital Holdings, a renewable investor, for GBP 358 million. The deal values Greencoat (which has GBP 6.7 billion of assets under management) at around GBP 477 million.

Source: Reuters 

Storebrand, a Norwegian insurer, has agreed to buy Danica Pensjonsforsikring, a Norwegian unit of Danish pension provider Danica, from Danske Bank for USD 221.4 million.   

Source: Reuters

Permanent TSB has agreed to buy the loan books, branches and asset finance business of Ulster Bank, a subsidiary of NatWest Group, in a cash (EUR 6.4 billion) and shares deal. 

Source: Reuters

National Bank of Greece has agreed with EVO Payments to form a JV which will provide merchant acquiring and payment services. Under the deal EVO will purchase 51% of NBG’s merchant acquiring business for EUR 158 million. 

Source: Reuters

Deals On The Table

The Irish government is said to be willing to begin selling down its 71% shareholding in Allied Irish Bank.

Source: FT

Sayonara

ING, a Dutch lender, is said to have decided to quit the French retail business. SocGen, Credit Agricole and Credit Mutuel are mentioned as potentially interested in taking over its  retail banking portfolio. 

Source: Reuters

Up-and-Comers

Aspiration Partners, a California-based fintech which claims to be providing banking services and investment products in an environmentally sustainable manner, has raised USD 315 million.  Aspiration has already earlier agreed to be taken public by a merger with a blank-cheque firm at a valuation of USD 2.3 billion. 

Source: Reuters

Exciting Numbers

According to McKinsey, in the world’s developed markets the bank average ROE will fall below 1.5% in 2021 against pre-crisis levels of around 9%

Source: FT

A Thought Worth Noting

“The world has come to believe assets in 2021 are worth what we thought they would have been worth in 2025 if the company performed flawlessly.”

Kevin Kelly, manager, Sequoia Heritage

Happy Holidays and warm wishes for the New Year!

Returning on 6 January 2022.

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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