Drivers for Mergers and Acquisitions in the European Banking Sector

The banking sector in Europe is bound to change its shape soon. In many countries the banking sector is still highly fragmented, especially in Germany and Italy. EU Banks need to grow in size if they want to be able to compete globally with financial titans such as Citigroup.

This study aims at analysing the key drivers and success factors for external growth via Mergers and Acquisitions (M&A) in the European banking sector. After explaining the theoretical background of Mergers and Acquisitions (Chapter 2), the study examines the current condition of the EU banking sector followed by a more detailed view on the main markets and players (Germany, UK, France, Spain, Italy) focussing on their potential role in a future consolidation process (Chapter 3). It seems that important obstacles for consolidation have been removed and banks may indeed engage in domestic and even cross border M&A. A detailed comparison of Europes largest banks will complement this section. By analysing paid premiums in the five key European economies, we will draw conclusions on the influence of market structure on the potential for consolidation.

In Chapter 4, the Banco Sabadell - Banco Atlantico case is analysed and discussed as an example of a domestic bank merger. Emphasis is put on the logic behind the operation, performance measurement and its strategic impact. The question, if value has been created for shareholders as well as other stakeholders, will be addressed. This recent case (2004) only allows for a preliminary analysis of the success of the transaction, particularly in terms of achieved synergies versus expected synergies. The case evidences typical sources for higher synergies in domestic M&A but reveals also important sources of synergies that would apply in cross border operations.

In the final conclusion (Chapter 5), the market analysis is put into perspective to recent developments and briefly compares it with the US Banking market. Key observations from the case study are summarized and finally this section aims at developing different scenarios for a future consolidation within the European banking sector.

 

Die Studie	Abgabedatum: Mai 2005 Seitenanzahl: 95
Inhaltsverzeichnis	1. Introduction 1.1. Executive Summary 1.2. Objectives of this study 1.3. Hypotheses 1.4. Data and Methodology 1.4.1. Data 1.4.2. Methodology 2. Theoretical background Literature Review 2.1. Merger Terminology 2.2. Types of M&A transactions 2.2.1. Direction: Horizontal, Vertical and Conglomerate 2.2.2. Mode: friendly or hostile 2.2.3. Initiator: Vendor or Acquirer 2.2.4. Type of payment: unlevered or levered 2.2.5. Type of value transfer: share deal or asset deal 2.2.6. Functional criteria 2.3. Motivations for M&A general and banking related 2.3.1. General Motivations for M&A 2.3.2. Motivations for M&A in the banking sector 2.4. How to define M&A success? 4 Perspectives 2.4.1. Shareholder Perspective 2.4.2. Consumer Perspective 2.4.3. Employee Perspective 2.4.4. Society Perspective 2.5. Measuring success in bank related M&A transactions 2.5.1. Event Studies 2.5.2. Dynamical efficiency studies 2.5.3. Performance studies 2.6. Factors explaining M&A success in bank mergers 2.6.1. Geographical focus 2.6.2. Product / Activity focus 2.6.3. Size of the target6 2.6.4. Growth focus of a transaction 2.6.5. Risk reduction potential 2.6.6. Profitability and cost efficiency of the target 2.6.7. Capital market performance of the target prior to a transaction 2.6.8. Experience of the acquiring bank 2.6.9. Method of payment 2.6.10. Post-merger Integration 2.7. Problems arising in different phases of a bank M&A transaction 3. European Banking sector 3.1. EU Banking Market Structure 3.1.1. Fragmentation 3.1.2. Performance 3.2. Spain: Banking sector overview 3.2.1. Current situation 3.2.2. Sector Performance 3.2.3. Legal framework 3.2.4. Fragmentation 3.2.5. M&A activity 3.2.6. Drivers and obstacles for further M&A activity in Spain 3.3. UK: Banking sector overview 3.3.1. Current situation 3.3.2. Sector Performance 3.3.3. Legal framework 3.3.4. Fragmentation 3.3.5. M&A activity 3.3.6. Drivers and obstacles for further M&A activity in the UK 3.4. France: Banking sector overview 3.4.1. Current situation 3.4.2. Sector Performance 3.4.3. Legal framework 3.4.4. Fragmentation 3.4.5. M&A activity 3.4.6. Drivers and obstacles for further M&A activity in France 3.5. Italy: Banking sector overview 3.5.1. Current situation 3.5.2. Sector Performance 3.5.3. Legal framework 3.5.4. Fragmentation 3.5.5. M&A activity 3.5.6. Drivers and obstacles for further M&A activity in Italy 3.6. Germany: Banking sector overview 3.6.1. Current situation 3.6.2. Sector Performance 3.6.3. Legal framework 3.6.4. Fragmentation 3.6.5. M&A activity 3.6.6. Drivers and obstacles for further M&A activity in Germany 3.7. Analysis of M&A transactions in the EU Banking sector 3.7.1. Domestic versus cross-border activity 3.7.2. Silence before the storm? 3.7.3. Four types of European M&A in the banking sector 3.7.4. Premium Analysis 4. Case study: Banco Sabadells acquisition of Banco Atlantico 4.1. Introduction 4.2. Banco Sabadell: Corporate profile 4.2.1. A history of successful acquisitions 4.2.2. Product and regional focus 4.2.3. Strategy 4.3. Banco Atlantico: Corporate profile 4.3.1. History 4.3.2. Strategy, Product and regional focus 4.3.3. Financial Analysis 4.4. Transaction details 4.4.1. Main acquisition facts 4.4.2. Time table 4.4.3. Integration process 4.5. Strategic motives for the transaction 4.5.1. Strategic fit 4.5.2. Synergies 4.5.3. Analysis of business units after the Atlantico acquisition 4.6. Performance measurement and comparison 4.6.1. Shareholder perspective: Abnormal return analysis 4.6.2. Financial Ratio analysis 5. Conclusion 5.1. Drivers and obstacles for a European Banking Consolidation 5.1.1. Drivers 5.1.2. Obstacles 5.1.3. Reasons for Banco Santanders acquisition of Abbey National 5.1.4. Where synergies in cross-border Banking M&A can be found 5.1.5. Taking a look at the USA 5.2. Conclusions from the Case Study 5.3. Possible consolidation scenarios 5.3.1. Product driven consolidation scenario 5.3.2. Regional consolidation scenarios Appendix Bibliography
Anbieter	infobroker.de arbeitet mit verschiedenen Studienanbietern und Vermarktern in Kooperation. Eine Übersicht finden Sie unter Kooperationspartner.
Versand & Lieferzeit	Sie erhalten die Studie per E-Mail im PDF Format zugesendet. In der Regel erhalten Sie diese binnen 24 Stunden zugesendet. Zumeist werktags ist der Versand am gleichen Tag möglich.
Preis	Versteht sich inkl. MwSt. Eine Nachlass für Studierende oder ein Versand auszugsweise ist leider nicht möglich.

So einfach geht´s
Mit "Auftrag absenden" führen Sie die Bestellung der Studie durch. Die Bestellung befindet sich dann im Warenkorb. Sie können nun weitere Bestellungen oder Recherchen in Auftrag geben oder an der Kasse die Aufträge absenden. Weitere Angaben zum Auftrag können Sie im Kundenbereich als Zusatzbemerkungen machen. Direkte Hilfe hier klicken-