Finance M&A to jump
The European financial services market is set for a wave of mergers and acquisitions (M&A) activity, according to Pricewaterhouse-Coopers.
In its European Financial Markets M&A Insights report, the accountancy firm said that the “steady as she goes” ethos that has been prevalent throughout 2009 will give way to a “restructuring-led wave of deal activity” as we move into 2010.
“Financial institutions will continue to identify, evaluate and sell their non-core businesses,” said PwC partner Nick Page, adding that the post-crisis restructuring in the sector could bring an increased number of private equity-backed deals.
“An increasing number of firms have expressed interest in the sector – both in the intermediary and services area, as well as in the businesses that take the underwriting risk,” he added.
The survey found that just €32bn (£29.2bn) worth of deals were announced in the first half of this year, compared with €178bn for all of 2008. It added that if government activity were excluded, the figures would be just €19bn for the first half, compared with €70bn for all of 2008.