From 14 March 2021 to 20 March 2021, mergers and acquisitions across the banking industry fell again, from 29 transactions to 22 transactions. Amongst the deals, there were 16 acquisitions, 4 asset transactions and 2 mergers.
Most notably, Swiss-based Chubb Limited made an unsolicited, non-binding proposal to acquire The Hartford Financial Services Group for $32.2bn in the US on 18 March 2021.
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Chubb Limited is a holding company of the Chubb Group of Companies, a property and casualty insurance company. The company offers personal accident and supplemental health insurance, commercial and personal property and casualty insurance, life insurance and reinsurance products.
After careful consideration of the proposal, the American investment and insurance company unanimously rejected the unsolicited proposal, determining that the transaction would not be in the best interests of the company and its shareholders.
Goldman Sachs and Deutsche Bank acted as The Hartford’s financial advisors whilst Cleary Gottlieb Steen & Hamilton acted as legal counsel.
Elsewhere in the US, IronNet Cybersecurity – a cybersecurity solutions provider – agreed to merge with LGL Systems Acquisition Corp, a special purpose acquisition company, on the 15 March 2021 for $162.87m.
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By GlobalDataLGL will combine with IronNet at an estimated pro forma total enterprise value of $927m. Upon closing of the transaction, the combined firm will be renamed as IronNet Cybersecurity Inc and will be listed on the New York Stock Exchange under IRNT.
IronNet’s existing stockholders will hold approximately 72% of the fully diluted shares of common stock in the combined company, IronNet Cybersecurity, immediately following the closing of the business combination.
The transaction will allow IronNet to accelerate its growth trajectory in the rapidly growing cybersecurity market and to capitalise on strong demand for new and more effective ways to defend against growing cyber threats. The transaction is expected to close in the third quarter of 2021.
In the Asia Pacific region, JP Morgan Asset Management acquired a 10% stake in CMB Wealth Management for $410.43m in China on 10 March 2021.
Acquisition of the Shenzhen-based China Merchants Bank, which operates the country’s largest private bank, is expected to enable JP Morgan Asset Management to expand its footprint in China.
According to CMB, the investment will “deepen the cooperation between the bank and the strategic investor” and represents a positive driver for CMB Wealth Management to “enhance its internal governance”.
In June 2020, The China Securities Regulatory Commission (CSRC), the country’s securities watchdog, cleared the application of JPMorgan to operate the first entirely foreign-owned futures business in the country.
The move was in line with China’s plan to open up its financial services sector to foreign players in order to boost competition.
On 16 March 2021, US-based Euronet Worldwide Inc, announced the acquisition of the Piraeus Bank Merchant Acquiring (PBMA) – an asset of Piraeus Bank SA – for $357.97 in Greece.
Euronet Worldwide provides electronic payments services to financial institutions, retailers, and individual consumers.
Under the transaction, Euronet customers will have access to a range of Piraeus Bank’s technologically enabled products and services. Piraeus Bank will continue to promote and distribute the acquiring products through its extended sales channels.
Piraeus Bank’s in-store acquiring business represents approximately 20 percent of Greece’s market while the bank’s online merchant acquiring represents approximately 40 percent of online and digital transactions in the country.
