Banking and capital markets deals insights: Q3 2018

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Banking and capital markets M&A rises, boosted by big deals

The announced value for M&A in banking and capital markets totaled $12.6 billion during Q3 2018, compared with $5.7 billion during the same period in 2017. Four deals exceeded $1 billion each, pushing up total M&A value year-to-date to $42.3 billion versus $27 billion during the first nine months of last year. Meanwhile, deal volume during the quarter continued to be flat.

Synovus Financial Corp. announced the acquisition of FCB Financial Holdings Inc. for $2.9 billion during the quarter. This amounted to 23% of total deal value. The Synovus acquisition underscored how commercial and retail bank activity is driving M&A in banking and capital markets. During the first three quarters of 2018, commercial and retail bank deals accounted for 58% of BCM deal volume and 67% of BCM value.

Other notable transactions during the quarter included:

  • Starwood Property Trust Inc.’s acquisition of the Energy Project Finance Debt Business of GE Energy Financial Services for approximately $2.2 billion.

  • WSFS Financial Corp.’s acquisition of Beneficial Bancorp for approximately $1.5 billion. The deal creates the largest community bank in the greater Delaware Valley.

  • Vertex Holdings Inc.’s acquisition of Green Bancorp for approximately $1 billion. The transaction created the tenth largest Texas-based banking institution in terms of deposit market share.

“We expect a jolt from FinTech innovation and the allure of legacy blocks at many insurers.”

Greg Peterson - US Financial Services Deals Leader

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Greg Peterson
US Financial Services Deals Leader, PwC US
Tel: +1 (646) 818 7983

Scott Carmelitano
Partner, Banking and Capital Markets Deals Leader, PwC US
Tel: +1 (213) 308 2892

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