Highly commended Latin American deal of the year 2013: Bancolombia
|Bancolombia´s acquisition of 95% of HSBC Bank Panama|
|Advisers to the acquirer||UBS and Bancolombia|
|Advisers to the target||Goldman Sachs and HSBC|
|return to the Deals of the Year 2013 index|
The sale of HSBC Bank Panama to Bancolombia was one of the largest M&A deals of the year and was transformative to the financial services industry in the fastest-growing economy in Latin America. The deal value was $2.1 billion based on estimated 2012 price to book value of 3.0x and 2012 estimated P/E of 16.9x. HSBC Panama was the second-largest bank in Panama, with a 17% market share in loans, 16% in deposits and 5% in insurance premiums. With the acquisition, Bancolombia adds total assets of $7.6 billion, deposits of $5.8 billion and shareholder’ equity of $800 million to its Panamanian operations to create a presence in a very attractive economy and banking industry. It also further enhances the movement of Colombia’s biggest banks northwards as they seek regional expansion and diversification.