BNPP’s Bank of the West sale does not signal European bank consolidation

BMO’s acquisition of Bank of the West from BNP Paribas marks the latest chapter in bank M&A across North America. In Europe, however, even domestic bank deals have slowed after a flurry of mid-tier deals in 2020.

And BNPP has made it clear that the $16.3 billion in cash it will receive from selling Bank of the West won’t go towards buying traditional peers in its home continent – despite the fact that the lack of a strategic rationale for owning a retail bank in the US rather than Europe is behind the move in the first place.