European banking consolidation

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European banking consolidation, the 3rd in our series of Global financial services M&A flyers on topical M&A matters in the financial services market, has just been launched. The flyer which was prepared by Nick Page, Shamshad Ali and Brent Keel of the TS FS team in London, is an analysis of M&A in the European banking sector over the last 10 years. Our analysis identifies a number of key themes, selected findings include:

• In the last 10 years there have been 274 cross-border European banking M&A transactions with an aggregate value of Euro 158bn
• The value of cross-border bank M&A in Europe has been rising over the last 3 years whilst domestic bank M&A has been falling since 1999
• More than 80% (by value) of European cross-border bank M&A involved 'western' European banks investing in other 'western' European banks
• European banks have invested Euro 27 bn on 89 deals in 'emerging' Europe

The paper concludes that assuming current high levels of current CEO confidence we believe that cross-border banking M&A will increase in the coming two or three years.