The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Stock-funded deals change the landscape in cross-border M&A

Investors' willingness to accept shares in foreign-owned companies could lead to a boom in European activity

Cross-border banking consolidation in Europe is here at last. UniCredit's current $18 billion offer for Germany's HVB, ABN Amro's offer for Italy's Banco Antonveneta and BBVA's bid for Italy's Banca Nationale del Lavoro all show the potential for dealmakers, following on from Santander's £8.5 billion ($15.5 billion) purchase of the UK's Abbey last year. "All of us in Europe have been waiting for a cross-border banking deal for ages. Suddenly there are two separate bids going on for Italian banks alone," says a prominent investment banker.

However, the Santander/Abbey and UniCredit/HVB combinations indicate a fundamental change in opinion among European stock investors, which could open the way for large-scale, stock-funded, cross-border European deals across all sectors. UniCredit wants to pay five of its ordinary shares for each HVB share. Under a deal agreed by both sets of management, UniCredit's Alessandro Profumo will be CEO of the combined group.

Santander's use of Spanish stock to buy a UK company last year was considered particularly innovative, but the deal was received well by both Abbey and Santander shareholders and the Santander stock price has experienced double-digit growth since. "The Abbey/Santander and now the UniCredit/HVB stock transactions show that the attitude of European investors has changed," says Dirk Albersmeier, head of M&A for Germany at JPMorgan, financial adviser to HVB along with Citigroup.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree