Private banking at heart of M&A
The mergers and acquisitions (M&A) market worth more than $10 billion is up by over 301% in the first half of 2018 compared with the same period in 2017, a study by law firm Allen & Overy has revealed.
Luxembourg, for instance, has seen a significant uptick in M&A transactions among private banks.
There is a growing number of big Chinese banks choosing to base their European operations in Luxembourg, Allen & Overy said, while Swiss banks are circling the market looking to reinforce their foothold in the Eurozone.
The number of big deals has grown steadily over the last two years and these have continued in 2018, with UBS acquiring Nordea and BNP Paribas buying ABN Amro’s Luxembourg operations.
Regionally, while Western Europe stands out as top performer with deal values up 103% year-on-year, the US showed a more muted but still impressive 81% increase in deal values.
Asia continues to grow with Japan a key market in the region with record-breaking outbound M&A figures up 365% from the same period in 2017.
The significant transactions this year so far are Takeda’s proposed $76 billion acquisition of Shire, the SoftBank-led investment in Uber and the $6.1 bullion Xerox and FujiFilm deal.