From 4 April 2021 to 10 April 2021, there were 18 deals across the banking sector, representing a decline of 13 transactions when compared to the previous weeks total of 31. Of the 18 deals, there were 13 acquisitions and 5 mergers.
On 5 April 2021, CaixaBank completed its acquisition of Bankia for $5.08bn in Spain. Under the transaction, which was announced on 18 September 2020, Caixabank offered 0.6845 shares for every share in Bankia, valuing Bankia at $5.14bn.
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The new group will be named Caixabank while Bankia will be dropped. The legal headquarters will be in Valencia, while maintaining operating headquarters in Madrid and Barcelona. Following the transaction, Caixabank will hold 74.2% of the new bank.
In an address to shareholders at the General Meeting, CaixaBank’s chairman, Jordi Gual, said: “We could not choose a better partner than Bankia to accompany us on this journey, and the merger will result in a stronger, more efficient and more profitable institution.”
CaixaBank’s chief executive officer, Gonzalo Gortázar, explained: “The deal will generate cost savings and enormous potential when it comes to revenue synergies.”
One day later, asset manager Amundi entered into exclusive negotiations with Societe Generale for the acquisition of Lyxor Asset Management for a total cash consideration of $976.16m.
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By GlobalDataSociete Generale chief executive, Frédéric Oudéa, stated that the transaction was fully in line with the company’s strategy in terms of savings products.
Oudéa said: “This transaction with Amundi, Europe’s leading asset manager, which Societe Generale helped to create, will enable Lyxor’s teams to play an active role in building the undisputed leader in passive management in Europe in a consolidating market.
The agreement maintains a partnership with Amundi for the provision of savings and investment solutions for Societe Generale’s networks. Additionally, Societe Generale will continue to support Amundi through a range of market solutions and securities services.
Oudéa continued: “Societe Generale and Amundi will remain key partners, each participating mutually in the value proposition implemented for their clients. In addition, this transaction would successfully close the refocusing programme launched in 2018 by Societe Generale.”
In the US, Eastern Bankshares, a stock holding company for Eastern Bank, entered into a definitive all-cash merger agreement with Century Bancorp, a stock holding company for Century Bank and Trust Company, for an aggregate transaction value of $642m on 7 April 2021.
Under terms of the agreement, which has been unanimously approved by both boards of directors, Century shareholders will receive $115.28 in cash for each share of Century Bancorp’s common stock. The transaction is expected to close in the fourth quarter of 2021 subject to conditions.
For almost a third of the value, The Brink announced plans to acquire PAI for $213m in the US on 6 April 2021. A privately held provider of ATM services in the US, PAI is expected to generate revenue of $320m.
Based in its new headquarters in Dallas, PAI employs 225 people across three major US locations and another 12 field locations. The acquisition was financed using available cash and the company’s existing credit facility.
