M&A deals in the banking and finance sector Considering the fields of mergers and acquisitions (M&A), it can be said that banking is the industry with the most active mergers and acquisitions (M&A) activities.
1.1. The deal ABN Amro merged with Barclays PLC worth $91 billion First of all, there are two banking giants, ABN Amro of the Netherlands and Barclays PLC of the UK (3). These two giants have officially merged together with a value of more than $ 91 billion. This is considered the largest merger ever in the history of the European banking industry in particular and in the global financial industry in general. Under this merger agreement, the new group, called Barclays PLC, headquartered in Amsterdam (Netherlands), has approximately 47 million customers globally with a new management board consisting of 10 members from Barclays and 9 members. member from ABN Amro. This also means that Barclays merging with ABN Amro will create one of the largest banking groups in the world by market capitalization. Not stopping there, ABN Amro bank also continued to merge with Royal Scottish Banking Union RBS, Stantander of Spain and Fortis of Belgium – Netherlands. This deal has a total value of 101 billion USD.
1.2. Unicredit SPA acquired Societe Generale SA and Capitalia SpA Next is Unicredit SPA – one of the most famous Italian banks that bought Societe Generale SA and Capitalia SpA banks, causing a stir, this is a big M&A deal in the European banking market. Unicredit SPA is one of the largest Italian banks and has expanded its operations in many countries around the world. The acquisition of Societe Generale SA and Capitalia SpA helps Unicredit SPA increase its coverage in the European market and strengthen its competitiveness with other competitors in the banking industry. The deal has attracted the attention of business circles and investors worldwide because of its large scale and its impact on financial markets and the global economy.
1.3. Bank of America acquires Merrill Lynch for $50 billion In the US banking sector, the ambition to lead the domestic banking industry in the US was the driving force behind Bank of America’s acquisition of Merrill Lynch for $50 billion. This merger gave birth to the most powerful financial group in the world. Accordingly, Bank of America has become the largest commercial bank in the US by deposits and market capitalization and is a member bank of the US Deposit Insurance Corporation (FDIC). Through this, Bank of America collects up to 90% of its profits from the domestic US market. The bank’s goal is to remain at the forefront of the domestic US
1.4. Wells-Fargo acquires Wachovia Bank for $15.1 billion
Besides the giant Bank of America, the most famous acquisition in the banking world in recent times is Wells-Fargo’s acquisition of Wachovia bank with a value of US$15.1 billion. After surpassing rival Citigroup in the competing acquisition of Wachovia, Wells Fargo has raised its level to par with other major US banking rivals such as JP Morgan Chase and Bank of America. Accordingly, this bank will have assets of $ 1.420 billion and become the third largest bank in the US.
1.5. UFJ Holding Bank merged with Mitsubishi Tokyo Financial group
Next is the successful merger in the Japanese banking industry when Mitsubishi UFJ Financial group is the result of the merger between two banks UFJ Holding and Mitsubishi Tokyo Financial group. This great bank was officially established and put into operation on October 1, 2005. Mitsubishi UFJ Financial group has now become one of the most powerful financial groups in the world with a capital of up to 1.770 billion USD with 40 million customers, surpassing Citigroup of America in terms of asset value. Analysts say the merger represents the recovery of the Japanese banking industry after a period of heavy debt.
1.6. New York exchange NYSE buys Euronext for $14.3 billion
The New York Stock Exchange NYSE made a huge merger and acquisition deal when it acquired Euronext for $14.3 billion. The transaction was announced in June 2006 and completed in April 2007. Euronext is one of the largest exchanges in Europe and includes exchanges in Paris, Brussels, Amsterdam and Lisbon. . This merger has made NYSE Euronext one of the largest exchanges in the world, offering a wide range of financial products and services to investors around the globe. The acquisition also created many opportunities for NYSE Euronext to grow and expand its business in the international financial markets.
