European banks: Countdown to the M&A ballet

mergers and acquisitionsPieces from a puzzle

It is only a question of time and the markets are waiting: there will be more consolidation operations in the European banking sector in the next few years, some of them cross-border.

This Monday, the banking sector was the main protagonist in European stock markets, after it became known over the weekend that the German Government had given the green light for a possible merger between the two main German credit entities: Deutsche Bank and Commerzbank, despite the significant job cuts expected if the operation goes ahead.

If the banking sector´s reaction is prompt or not, it will have to wait. In any case, the head of the ECB´s Supervisory Board Andrea Enria has shown herself unenthusiastic about the idea of national champions. He replied in this way to Claire Jones of the Financial Times:

“I don’t particularly like the idea of national champions, of European champions; I think that, especially when you are a supervisor, you shouldn’t promote any particular structural outcome. And, actually, you want to have a market which is open, so if there are foreign banks, foreign investors, bringing their expertise, their capital, into your jurisdiction, that should be welcome.”

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.