Mergers and Acquisitions in the European Banking Sector / Fusionen und Akquisitionen im Europäischen Banken Sektor

Diploma Thesis , 2005 , 95 Pages , Grade: 0

Business economics - Banking, Stock Exchanges, Insurance, Accounting

Ziel der Arbeit ist es, Treiber und Erfolgsfaktoren von M&A Operationen im Europäischen Bankensektor zu identifizieren und zu analysieren. Methodologisch wurde hierbei auf die Fallstudienanalyse sowie empirische Untersuchungen zurückgegriffen. Die Arbeit mündet in der Entwicklung verschiedener Szenarien einer zukünftigen Konsolidierung des Bankensektors sowohl innerhalb der einzelnen EU Staaten als auch cross-border.

Inhaltsverzeichnis

• Agenda
• Introduction
• Executive Summary
• Objectives of this study
• Hypotheses
• Data and Methodology
• Data
• Methodology
• Theoretical background - Literature Review
• Merger Terminology
• Types of M&A transactions
• Direction: Horizontal, Vertical and Conglomerate
• Mode: friendly or hostile
• Initiator: Vendor or Acquirer
• Type of payment: unlevered or levered
• Type of value transfer: share deal or asset deal
• Functional criteria
• Motivations for M&A – general and banking related
• General Motivations for M&A
• Motivations for M&A in the banking sector
• How to define M&A success? - 4 Perspectives
• Shareholder Perspective
• Consumer Perspective
• Employee Perspective
• Society Perspective
• Measuring success in bank related M&A transactions
• Event Studies
• Dynamical efficiency studies
• Performance studies
• Factors explaining M&A success in bank mergers
• Geographical focus
• Product/Activity focus
• Size of the target
• Growth focus of a transaction
• Risk reduction potential
• Profitability and cost efficiency of the target
• Capital market performance of the target prior to a transaction
• Experience of the acquiring bank
• Method of payment
• Post-merger Integration
• Problems arising in different phases of a bank M&A transaction
• European Banking sector
• EU Banking Market Structure
• Fragmentation
• Performance
• Spain: Banking sector overview
• Current situation
• Sector Performance
• Legal framework
• Fragmentation
• M&A activity
• Drivers and obstacles for further M&A activity in Spain
• UK: Banking sector overview
• Current situation
• Sector Performance
• Legal framework
• Fragmentation
• M&A activity
• Drivers and obstacles for further M&A activity in the UK
• France: Banking sector overview
• Current situation
• Sector Performance
• Legal framework
• Fragmentation
• M&A activity
• Drivers and obstacles for further M&A activity in France
• Italy: Banking sector overview
• Current situation
• Sector Performance
• Legal framework
• Fragmentation
• M&A activity
• Drivers and obstacles for further M&A activity in Italy
• Germany: Banking sector overview
• Current situation
• Sector Performance
• Legal framework
• Fragmentation
• M&A activity
• Drivers and obstacles for further M&A activity in Germany
• Analysis of M&A transactions in the EU Banking sector
• Domestic versus cross-border activity
• Silence before the storm?
• Four types of European M&A in the banking sector
• Premium Analysis
• Case study: Banco Sabadell's acquisition of Banco Atlantico
• Introduction
• Banco Sabadell: Corporate profile
• A history of successful acquisitions
• Product and regional focus
• Strategy
• Banco Atlantico: Corporate profile
• History
• Strategy, Product and regional focus
• Financial Analysis
• Transaction details
• Main acquisition facts
• Time table
• Integration process
• Strategic motives for the transaction
• Strategic fit
• Synergies
• Analysis of business units after the Atlantico acquisition
• Performance measurement and comparison
• Financial Ratio analysis
• Shareholder perspective: Abnormal return analysis
• Conclusion
• Drivers and obstacles for a European Banking Consolidation
• Drivers
• Obstacles
• Reasons for Banco Santander's acquisition of Abbey National
• Where synergies in cross-border Banking M&A can be found
• Taking a look at the USA
• Conclusions from the Case Study
• Possible consolidation scenarios
• Product driven consolidation scenario
• Regional consolidation scenarios
• Appendix
• Bibliography

Zielsetzung und Themenschwerpunkte

This master thesis aims to analyze the drivers and obstacles for mergers and acquisitions (M&A) in the European banking sector. It focuses on the specific case of Banco Sabadell's acquisition of Banco Atlantico in Spain, examining the strategic motives and performance implications of the transaction. The thesis also explores the broader context of European banking consolidation, including the potential for future M&A activity and the challenges involved.

• Drivers and obstacles for M&A in the European banking sector
• Strategic motives for M&A transactions
• Performance measurement and analysis of M&A transactions
• European banking consolidation trends
• Case study analysis of Banco Sabadell's acquisition of Banco Atlantico

Zusammenfassung der Kapitel

The thesis begins by providing a comprehensive overview of M&A terminology, types of transactions, and motivations for M&A activity, particularly in the banking sector. It then discusses various perspectives on M&A success and explores methods for measuring success in bank-related transactions. The thesis also examines factors that contribute to successful bank mergers, including geographical focus, product/activity focus, size of the target, growth focus, risk reduction potential, profitability, and post-merger integration.

The next section delves into the European banking sector, analyzing the market structure, performance, and M&A activity in key countries such as Spain, the UK, France, Italy, and Germany. The thesis provides a detailed overview of the banking sector in each country, including its current situation, performance, legal framework, fragmentation, and drivers and obstacles for further M&A activity.

The case study of Banco Sabadell's acquisition of Banco Atlantico examines the strategic motives behind the transaction, including strategic fit, synergies, and the impact on business units after the acquisition. The thesis also analyzes the performance of the transaction from a shareholder perspective, using abnormal return analysis.

The conclusion summarizes the key findings of the thesis, highlighting the drivers and obstacles for European banking consolidation. It also discusses possible consolidation scenarios and draws conclusions from the case study of Banco Sabadell's acquisition of Banco Atlantico.

Schlüsselwörter

The keywords and focus themes of the text include mergers and acquisitions, European banking sector, consolidation, drivers, obstacles, strategic motives, performance measurement, case study, Banco Sabadell, Banco Atlantico, Spain, banking regulation, cross-border M&A, and financial integration.

• College: ESCP Europe Business School - Campus Paris
• Grade: 0
• Author: MSc Daniel Wülbern (Author)
• Publication Year: 2005
• Pages: 95
• Catalog Number: V186028
• ISBN (eBook): 9783656983279
• ISBN (Book): 9783867468107
• Language: English
• Tags: mergers, acquisitions, european, banking, sector, fusionen, akquisitionen, europäischen, banken, sektor