Banking M&A Digest #157 (6.1.2022)

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Corporate Financier’s Notes by Aivars Jurcans

Dealmaking

Tencent, a Chinese tech group, has taken a stake in Monzo, a UK digital bank, by joining  a funding round that values Monzo at USD 4.5 billion.

Source: FT

China Cinda Asset Management, a state-owned asset manager, has taken a 24% stake in Chongqing Ant Consumer Finance, an Ant Group’s consumer finance company, by joining a USD 3.5 billion fundraising exercise. 

Source: FT

Zurich Insurance Group has agreed to sell its Italian life and pensions back book to GamaLife, a Portuguese insurer. The deal is expected to release about USD 1.2 billion of capital. The back books are life insurance products that are no longer sold but are managed until maturity. 

Source: Bloomberg

SulAmerica, a Brazilian insurer, has agreed to buy 100% of Sompo Saude, a subsidiary of Japan’s Sompo Holdings, for USD 40.3 million. 

Source: Reuters

HSBC has agreed to acquire L&T Investment Management, a mutual fund arm of India’s L&T Finance Holdings, for USD 425 million. The company has assets under management of over USD 10.65 billion.

Source: Reuters

Citigroup has agreed to sell its consumer-banking business in the Philippines to Unionbank for about USD 908 million. 

Source: Reuters

Mapfre, a Spanish insurer, has sold its stake in Bankia’s insurance business to Caixabank, a Spanish lender, in a EUR 571 million deal. Caixa has agreed to pay EUR 324 million for Mapfre’s 51% stake in Bankia Vida life insurer and will also pay EUR 247 million to end a contract to distribute non-life insurance.

Source: Reuters

Societe General and Credit Mutuel Arkea are said to have both made offers for ING’s, a Dutch lender, French retail banking portfolio. 

Source: Reuters

Jordan Capital Bank is said to have approved a mandatory offer to acquire Societe Generale Bank Jordan. SGBJ is 87.7% owned by Societe Generale de Banque au Liban and has USD 140 million in capital.

Source: Reuters

Exciting Numbers

According to figures by Refinitiv, deals worth more than USD 5.8 trillion were agreed worldwide in 2021, a 64% rise from the year before.

Source: FT

Private equity firms have struck USD 42 billion worth of deals in which they sold portfolio companies to their own funds in 2021. Such deals are known as “continuation fund” sales.

Source: FT

A Thought Worth Noting

“The easy part of this uneven global economic recovery appears over.”

Daan Struyven, senior global economist, Goldman Sachs

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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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