Major Banks, Central Banks, and Fintech: A Dealmaking Spree
There were 240 deals recorded involving top major banks, central banks, and non-bank competitors companies in the three months to April with a number of high profile merger, sponsorship, venture financing, equity offering, asset transaction, debt offering, acquisition and private equity deals.
That’s according to GlobalData’s Financial Deals database, which tracks market activity across a variety of sectors and deal types.
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The deals below only include those that have been completed – so excludes rumours or those that have been agreed but not yet executed.
The figures, which cover the top major banks, central banks, and non-bank competitors companies, show the market in the US to be the most active, with 63 deals taking place over the last three months. That was followed by India, which saw 24 deals.
Below are some of the largest completed deals to have taken place in the last quarter.
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By GlobalDataAcquisitions
The Toronto-Dominion Bank (TD Bank) To Acquire First Horizon - 28 February ($13.4bn)
The Toronto-Dominion Bank (TD Bank), a Canada-based company that provides retail and corporate banking, wealth management, and related financial solutions, has announced to acquire First Horizon Corp, a US-based bank-holding company, which offers banking, wealth management, and capital market solutions through its primary subsidiary First Horizon Bank, for a cash transaction valued at $13.4 bn.
TD to acquire First Horizon in an all-cash transaction valued at USD13.4 billion, or USD25.00 for each common share of First Horizon.
Following the closing of the transaction, Bryan Jordan, President and Chief Executive Officer of First Horizon, will join TD as Vice Chair, TD Bank Group, reporting to Bharat Masrani and will join the TD Senior Executive Team. He will also be named to the Boards of Directors of TD's U.S. Banking entities as a director and Chair. Jordan will continue to be based in Memphis.
TD Securities and J.P. Morgan served as financial advisors and Simpson Thacher & Bartlett LLP and Torys LLP served as legal advisors to TD. Morgan Stanley & Co. LLC served as financial advisor and Sullivan and Cromwell LLP served as legal advisor to First Horizon.
Intesa Sanpaolo, Generali Italia and UniCredit Sell 60% Stake in Bank of Italy for $4.77bn - 22 April
Intesa Sanpaolo SpA, Generali Italia SpA and UniCredit SpA, providers of financial services, have sold 60% stake in Bank of Italy, SpA, a central bank of Italy, for €4.4bn ($4.77bn). All the companies are based in Italy.
Rothschild & Co acted as financial advisor to Intesa Sanpaolo, UniCredit and Generali.
Commonwealth Bank of Australia to Sell Bank of Hangzhou for $1.31bn - 01 March
Commonwealth Bank of Australia, an Australia-based provider of retail and corporate banking and other financial solutions, has agreed to sell Bank of Hangzhou Co Ltd, a provider of commercial banking products and services, for a consideration of $1.31bn. Both the companies involved in the transaction are based in China.
CBA said it would sell down its shareholding to entities controlled by the Hangzhou municipal government, advancing a strategy that has been adopted by most Australian retail banks to do away with non-core operations and focus on essential services at home.
The completion of the deal, currently expected in mid-2022.
BPER Banca to Acquire 80% Stake in Banca Carige for $1.27bn - 14 February
BPER Banca S.p.A., a provider of banking services to individuals, families, companies and freelancers, has signed the acquisition agreement to controlling interest of approximately 80% of the share capital of Banca Carige S.p.A. - Cassa di Risparmio di Genova e Imperia, a provider of various banking products and services, from Interbank Deposit Protection Fund (FITD) and the Voluntary Intervention Scheme (VIS and, together with FITD, the Selling Shareholders), for €1.128bn ($1.27bn). All companies are based in Italy.
The Agreement, signed after completion of the confirmatory due diligence conducted on CARIGE by BPER Banca, replicates the main terms and conditions included in the non-binding offer submitted by BPER Banca on 9 January 2022 and communicated to the market on the same date.
In particular, the following was confirmed: the consideration of €1 for the acquisition of the entire shareholding owned by the Selling Shareholders; payment of a capital contribution of €530m to CARIGE by FITD at the closing of the Transaction.
Closing, which is subject to obtaining the necessary regulatory and statutory authorisations, is expected to take place by 30 June 2022, so as to enable BPER Banca to benefit from the conversion of Deferred Tax Assets (DTA) on CARIGE's tax losses into tax credits.
As was previously communicated to the market, BPER Banca will launch a mandatory public purchase offer, after Closing, on the remaining shares of CARIGE at a price of €0.80 per share.
Deal History:
Planned: On December 14, 2021, BPER Banca made a non-binding offer to acquire 88.3% in Banca Carige for consideration of €1.
The Bank of Nova Scotia to Acquire 16.8% Stake in Scotiabank Chile - 28 February ($1.02bn)
The Bank of Nova Scotia, a Canada-based multinational banking and financial services company, has announced that it has reached an agreement to acquire Grupo Said's remaining 16.8% stake in Scotiabank Chile, a Chile-based banking and financial services company.
With the transaction The Bank of Nova Scotia increasing its ownership in Scotiabank Chile to 99.8%. The transaction is subject to customary closing conditions and regulatory approvals.
The transaction is valued at approximately C$1.3bn ($1.02bn).
On closing the Bank will pay C$650m in cash and issue 7 million shares to Grupo Said impacting Scotiabank's Common Equity Tier 1 capital ratio by approximately 10 basis points.
The transaction will add approximately C$35m per quarter to the Bank's earnings and be immediately accretive to earnings per share.
Mergers
Housing Development Finance Corporation to Merge with HDFC Bank - 04 April ($58,519m)
Housing Development Finance Corporation Ltd (HDFCL), a deposit-taking non-banking financial institution that offers housing finance solutions, has agreed to merge with HDFC Bank Ltd., a provider of personal and corporate banking, private and investment banking, and other related financial solutions. Both the companies are based in India.
Following the transaction, the shareholders of HDFCL as on record date will receive 42 shares of HDFC Bank for 25 shares of HDFCL, HDFCL's shareholding in HDFC Bank will be extinguished as per the scheme of amalgamation upon the Scheme becoming effective.
As part of the transaction, HDFCL's wholly-owned subsidiaries HDFC Investments Limited and HDFC Holdings Limited, will merge into HDFCL.
Post the transaction, HDFC Bank will be 100% owned by public shareholders and existing shareholders of HDFCL will own 41% of HDFC Bank.
Currently, HDFCL, along with two of its wholly-owned subsidiaries (HDFC Investments and HDFC Holdings), holds 21% of paid-up equity share capital of HDFC Bank.
HDFCL have a total asset under management of INR5,260 billion and a market cap of INR4,440 billion, and HDFC Bank will have a market cap of INR8,350 billion.
Morgan Stanley India Company Private Ltd. Were financial advisors to HDFC Bank solely for the purpose of providing a fairness opinion on the valuation done by the valuer for the proposed transaction. Bank of America Merrill Lynch (BofA) Securities were financial advisors to HDFCL solely for the purpose of providing a fairness opinion on the valuation done by the valuer for the proposed transaction.
J.P. Morgan, Goldman Sachs, Citi, Nomura, CLSA, BNP, HSBC, ICICI Securities and Edelweiss acted as financial advisors to HDFC Bank. Credit Suisse, Kotak Securities, Jefferies, Arpwood, Motilal, Axis, JM Financial, IIFL and Ambit acted as financial advisors to HDFCL.
Wadia Ghandy & Co., Cravath, Swaine & Moore LLP acted as legal advisors to HDFC Bank and AZB & Partners, Argus Partners and Singhi & Co. Acted as the legal advisors to HDFCL.
Deloitte Touche Tohmatsu India LLP and Mr. Harsh Chandrakant Ruparelia (Registered Valuer) were appointed as valuers by HDFC Bank. Bansi S. Mehta & Co. And Ms. Drushti Desai (Registered Valuer) were appointed as valuers by HDFCL respectively.
Dhruva Advisors LLP were the tax advisors to HDFCL and HDFC Bank.
The transaction completion is subject to shareholders, creditors and regulatory approvals including from RBI, IRDAI, CCI, SEBI and Stock Exchange, and the closing is expected to be achieved by September 2023, subject to completion of regulatory approvals and other customary closing conditions.
Midea Real Estate to Merge With China Construction Bank For $1.6bn - 21 March
Midea Real Estate Holding Limited, a real estate developer together with its subsidiaries, has entered into an agreement to merge with China Construction Bank Corporation (CCB) Guangdong Province Branch (CCB), a financial institution, for a consideration of RMB10 billion (USD1.6 billion). Both companies are based in China.
The acquisition enable the Midea Real Estate to provide sufficient funding support for its development in related business.
Under the terms of the agreement, CCB will grant the Group a loan assistance amount of approximately RMB2 billion to finance the construction for the affordable rental housing projects and as general working capital and a housing mortgage financing amount of RMB10 billion for personal housing mortgage in respect of the Group's property development projects, respectively.
Fulton Financial to Merge with Prudential Bancorp - 02 March ($142m)
Fulton Financial Corp has signed an agreement to merge with Prudential Bancorp, Inc. Both the companies involved in the transaction are bank holding companies.
Under the terms of the Merger Agreement, Prudential shareholders will receive Fulton common stock based on a fixed exchange ratio of 0.7974 Fulton shares and USD3.65 in cash for each Prudential share they own. The implied value of the transaction, based on the 10-day volume weighted average stock price of USD18.01 for Fulton's common stock for the period ending March 1, 2022, is approximately USD142.1 million in the aggregate, or USD18.01 per Prudential common share. The transaction is expected to qualify as a tax-free exchange with respect to the stock consideration received by Prudential shareholders. In aggregate, approximately eighty percent (80%) of the transaction consideration to Prudential common shareholders will consist of Fulton common stock, with the remaining twenty percent (20%) payable in cash.
The merger is expected to close in the third quarter of 2022, after satisfaction of closing conditions described in the Agreement, including the receipt of customary regulatory approvals and the approval by Prudential's shareholders. Following the closing, Prudential's bank subsidiary, Prudential Bank, will be merged into Fulton's bank subsidiary, Fulton Bank, N.A.
Stephens Inc is acting as financial advisor, and Barley Snyder LLP is acting as legal counsel to Fulton. Keefe, Bruyette & Woods, Inc. Is acting as financial advisor and Silver, Freedman, Taff & Tiernan LLP is acting as legal advisor to Prudential, for the transaction.
Kuwait Projects Company Holding (KIPCO) to Merge with Qurain Petrochemical Industries - 14 March
Kuwait Projects Company Holding K.S.C.P. (KIPCO), a provider of financial services and involved in media, manufacturing, and real estate sectors, has reached a preliminary agreement to merge with Qurain Petrochemical Industries Co, a petrochemicals company. Both the companies involved in the transaction are based in Kuwait.
VTB to Merge with Otkritie, Russian National Commercial Ban(RNCB) and Kommersant - 29 April
VTB Bank, a provider of financial services, has agreed to merge with Otkritie, a provider of commercial banking services, Russian National Commercial Bank, a banking company and Kommersant, a publishing company. All the companies involved in the transaction are based in the Russia.
Venture financing
Neon Payments (Neon Pagamentos) Secures USD300 Million in Series D Funding - 14 February ($300m)
Neon Payments SA (Neon Pagamentos SA), a Brazil-based digital bank that offers credit cards, personal loans, and investment products, has secured BRL1.6 billion (USD300 million) in Series D funding led by BBVA.
With this investment, BBVA acquires additional 21.7% stake in Neon Payments.
Neon Payments brings the total funding to BRL3.7 billion.
Deal History:
Announced: On February 14, 2022, Neon Payments (Neon Pagamentos), has announced to secure USD300 million in Series D funding led by BBVA.
NTex Transportation Services (ElasticRun) Secures USD300 Million in Series E Funding - 07 February ($300m)
NTex Transportation Services Pvt Ltd (ElasticRun), an India-based B2B eCommerce platform connecting brands to rural parts of the nation, has secured more that USD300 million in series E funding led by SoftBank Vision Fund 2 with participation from Goldman Sachs, Prosus Ventures, Innoven Capital, Chimera Investment and Gablehorn Investments.
The funding round values the company at USD1.5 billion.
History:
Rumor: On January 05, 2021, techcrunch reported NTex Transportation Services Pvt Ltd (ElasticRun), may secure USD200 million in Series E funding from SoftBank Vision Fund 2 and Goldman Sachs.
OneFootball Secures USD300 Million in Series D Funding - 28 April ($300m)
Onefootball GmbH, a Germany-based soccer-focused media platform, has secured USD300 million in Series D funding led by Liberty City Ventures and Animoca Brands Co., Ltd with participation from Dapper Labs, DAH Beteiligungs GmbH, Quiet Capital, RIT Capital Partners, Senator Investment Group and ALSARA INVESTMENT SA.
China-Korea Life Insurance Secures USD285 Million in Venture Funding - 25 March ($286m)
China-Korea Life Insurance, a life insurance service provider that can provide general insurance, life insurance, health insurance, accident insurance and other products, has secured CNY1.82 billion (USD285 million) in venture funding from Zhejiang Dongfang, Zhejiang Changxing Financial Holdings, Wenzhou Guojin Industry And Trade, Wenzhou Electric Power Investment, Wenzhou Delivery, and Guotai Junan.
Britishvolt to Raise USD270.59 Million in Series C Venture Funding - 15 February ($271m)
Britishvolt Ltd, a UK-based electric vehicle battery startup, has to raise GBP200 million in a Series C funding round from Bank of America, Citibank, Peel Hunt, and Glencore.
Under the deal, Glencore invested GBP40 million in Britishvolt.
Lazard acting as financial advisor to Britishvolt in the transaction.
Private equity
CK Asset Holdings May Sell Stake in UK Power Networks - 03 March ($20,005m)
CK Asset Holdings Ltd (CK Asset), a Hong Kong-based company involved in the property development and property investment businesses, intends to sell stake in UK Power Networks, a distribution network operator for electricity, for an approximate purchase consideration of GBP15,000 million, according to sources citing people familiar with the matter.
A consortium led by Macquarie Group Ltd. And KKR & Co. Is in advanced talks to buy UK Power Networks. The bidder group also includes APG, China Investment Corp., Ontario Teachers' Pension Plan Board and PSP Investments, according to the people.
UK Power Networks is jointly owned by CK Infrastructure Holdings Ltd. And fellow group companies Power Assets Holdings Ltd. And CK Asset Holdings Ltd.
Clayton, Dubilier & Rice to Acquire 60% stake in Kindred at Home from Humana for USD2.8 Billion - 21 April ($2,800m)
Clayton, Dubilier & Rice, LLC (CD&R), a private equity firm, has signed a definitive agreement to acquire 60% stake in Kindred at Home, a provider of home health services, from Humana Inc, a health and well-being company. All the companies involved in this transaction are based in US.
Under the agreement, Humana will divest a 60 percent interest in Kindred at Home, and receive cash proceeds of approximately USD2.8 billion, reflecting an enterprise valuation of USD3.4 billion and a multiple of approximately 12 times the divisions' current year forecast for adjusted earnings before interest, income taxes, depreciation and amortization, or Adjusted EBITDA.
Goldman Sachs & Co. LLC and Barclays are acting as financial advisors to Humana, while Fried, Frank, Harris, Shriver & Jacobson LLP and Manatt, Phelps & Phillips, LLP are acting as legal advisors to Humana.
Deutsche Bank Securities Inc. And UBS Investment Bank are acting as financial advisors to Clayton, Dubilier & Rice and Debevoise & Plimpton LLP and Ropes & Gray LLP are acting as legal advisors to Clayton, Dubilier & Rice.
The transaction is expected to close in the third quarter of 2022 and is subject to customary state and federal regulatory approvals. Upon closing of the transaction, the Hospice and Personal Care divisions will be restructured into a standalone operation.
Old Mutual May Acquire 60% Stake in Lekela Power from Actis - 14 February ($2,000m)
Old Mutual Ltd., a South Africa-based private equity firm, intends to acquire 60% stake in Lekela Power, a renewable-generation firm, from Actis LLP, a private equity company, according to people with knowledge of the matter. According to sources, Lekela may be worth more than USD2 billion.
Reportedly, Actis is working with Goldman Sachs to arrange the potential sale of its stake in the company.
Advent International May Invest USD1 Billion in Yes Bank - 04 February ($1,000m)
According to Economic Times, Advent International Corp, a US-based private equity firm, may invest USD1 billion in Yes Bank Ltd, an India-based provider of retail and corporate banking and other financial solutions.
Abu Dhabi Developmental Holding Acquires Stake in Commercial International Bank - 13 April ($911m)
Abu Dhabi Developmental Holding Company PJSC (ADQ), an UAE-based investment company, has acquired a stake in Commercial International Bank Egypt SAE, an Egypt-based bank offering financial products and services, for USD911.457 million.
The execution of the deal through the block trading mechanism on 340.096 million shares with a value of USD911.457 million.
Asset transactions
Credit Agricole and AXA May Acquire Stake in Hornsea 2 Wind Farm in England, UK from Orsted - 15 February ($2,440m)
Credit Agricole SA and AXA SA, intends to acquire stake in Hornsea 2 wind farm located in England, UK from Orsted AS, a renewable energy company, according to sources citing people familiar with the matter. The total installed capacity of the plant is 1300 MW.
Hornsea 2 wind farm will be capable of powering more than 1.3 million homes and began to produce some power in December, 2021.
Reportedly, The French firms are in advanced discussions to acquire a stake in Hornsea 2, though the auction hasn't been finalized. The transaction value could be worth about GBP1.8 billion (USD2.44 billion) for a 50% share.
Axis Bank to Acquire Consumer Businesses from Citigroup and Citicorp Finance - 30 March ($1,628m)
Axis Bank Ltd, an Indian provider of commercial and personal banking and other related financial solutions, has agreed to acquire consumer businesses covering loans, credit cards, wealth management and retail banking operations in India, from Citibank NA India and Citicorp Finance (India) Limited for a purchase consideration of approximately INR123.25 billion (USD1628.13 million).
The transaction comprises the sale of the consumer businesses of Citibank India, which includes credit cards, retail banking, wealth management and consumer loans. The deal also includes the sale of the consumer business of Citi's non-banking financial company, Citicorp Finance (India) Limited, comprising the asset-backed financing business, which includes commercial vehicle and construction equipment loans, as well as the personal loans portfolio.
The acquisition is subject to customary closing conditions, including receipt of regulatory approvals and Closing is expected to be achieved in fourth quarter of 2023.
AXIS Capital and Credit Suisse acted as Financial Advisors to Axis Bank for the transaction, and Khaitan & Co acted as Legal Advisor. In addition, the Bank was supported by PricewaterhouseCoopers and Boston Consulting Group.
Deal History:
Rumor: On February 14, 2022 According to people familiar with matter, Axis Bank Ltd, an India-based provider of commercial and personal banking and other related financial solutions, may acquire retail banking business in India from Citigroup Inc., a US-based financial services company, for a consideration of USD2.5 Billion.
An agreement for the consumer unit may be announced as soon as the next few weeks and is contingent on approval from the Reserve Bank of India.
The deal would include a cash component of less than USD2 billion, accounting for the consumer business liabilities.
Banco de Sabadell May Sell its Payments Business - 11 February ($397m)
According to gulftime and pymnts sources, Banco de Sabadell SA, a Spain-based provider of banking products and related financial solutions, may sell its payments business.
The consideration may be between EUR250 million and EUR350 million (USD283 million -USD397 million).
The payments business handles the processing of transactions made with credit and debit cards.
Nexi in Talks to Acquire Payments Unit from BPER Banca - 21 February ($396m)
Nexi SpA, a payment system's bank, is in advanced talks to acquire the Italian payment unit from BPER Banca Spa, a banking group offering traditional banking services to individuals, corporate and public entities for EUR350 million (USD396.19 million). Both the entities are based in Italy.
The company began exclusive discussions with BPER Banca earlier this month to buy its merchant acquiring business, which specializes in the management of electronic payments, said the people, asking not to be named discussing confidential information.
People familiar with this matter said a deal is expected to be signed by the end of March.
Paolo Bertoluzzo is the Chief Executive Officer of Nexi SpA.
Worldline Acquires Controlling Stake in Commercial Acquiring Business from Australia and New Zealand Banking Group(ANZ) - 01 April ($363m)
Worldline SA, a France-based provider of e-payment transaction services, has acquired controlling stake in the commercial acquiring business of The Australia and New Zealand Banking Group Limited (ANZ), an Australian multinational banking and financial services company, for AUD485 million(USD363.2 million).
As part of transaction companies created 51%-49% joint-venture controlled by Worldline to operate and develop commercial acquiring services in Australia with ANZ Bank.
