overview

drivers

utilities

transport

finance

+ studies

media

chemicals

metals

food

auto/aero

property

infrastructure

engineering

retail

hospitality

packaging

clothing

ICT

advertising

accounting

tobacco

pharma

collapses






































related
Profiles
& Notes:

telecoms
bubble

Aust & NZ
telecoms

telco
privatisations

telco
mergers &
acquisitions

IPOs

Private
Equity
Funds

Hedge
Funds

Collectibles,
Prices,
Cultures

     finance

This page provides some finance sector benchmarks for acquisitions and disposals over the past twenty years.

It covers -

• banks and broking
• exchanges
• credit cards
• insurance and funds management
• leasing - equipment, cars, aircraft
• studies

It complements the guide on e-capital and detailed notes on private equity and hedge funds.

     banks and broking

Recent banking, broking and consumer finance sector landmarks include -

• Crédit Agricole buys Crédit Lyonnais for €1.9bn in 2002
• Citigroup acquires Golden State Bancorp for US$5.8bn in 2002
• JP Morgan Chase merges with Bank One in US$59bn deal in 2003
• Bank of America buys FleetBoston Financial for US$49bn in 2003
• BNP Paribas pays US$2.4bn for United California Bank in 2003
• Banco Santander Central Hispano buys Abbey National in £8.5bn deal in 2004
• GE Money pay $400m for Australian Financial Investments Group (AFIG) - AMS and Wizard home loans - in 2004
• National Australia Bank sells National Irish Bank of Ireland and Northern Bank to Danske Bank for £967m in 2004
• Royal Bank of Scotland buys Charter One Financial for US$10.5bn in 2004
• Kaupthing buys Singer & Friedlander for £547m in 2005
• Bank of America pays US$35bn for MBNA in 2005
• Bank of America pays US$3bn for 9% of Bank of China in 2005
• Barclays pays US$4.2bn for 54% of Absa in 2005
• Unicredito buys HVB Group for €15.4bn in 2005
• GE Money buys PRG Finance Group - including Pacific Retail Finance (PRF) - of New Zealand for NZ$145m in 2005
• Raffeisen buys Aval Bank for US$3.2bn
• ABN AMRO pays $3.9bn for 39% of Antonveneta in 2005
• Merrill Lynch pays US$400m for Advest in 2005
• Capital One Financial agrees to acquire North Fork Bancorporation for US$14.6bn in 2006
• Kookmin Bank agrees to pay US$7.2bn for controlling stake in Korea Exchange Bank in 2006
• TD Banknorth agrees to buy Interchange Financial Services Corp. for US$480.6m in 2006
• ICAP agrees to buy electronic currency trading system EBS for US$775m in 2006
• Regions Financial merges with AmSouth in US$10bn stock swap in 2006
• UBS buys Banco Pactual for US$2.6bn in 2006
• UBS agrees to buy ABN Amro futures unit for US$386m in 2006
• UBS agrees to buy Piper Jaffray's brokerage unit for US$575m in 2006
• Banco Bilbao Vizcaya Argentaria agrees to pay US$2.64bn for Texas Regional Bancshares Inc and State National Bancshares Inc in 2006
• HSBC pays US$1.77bn for Grupo Banistmo of Panama in 2006
• Bank of New York buys Mellon Financial for US$16.5bn in 2006
• Prudential sells online bank Egg to Citigroup for £575m in 2007
• Merrill Lynch agrees to acquire First Republic Bank for US$1.8bn in 2007
• State Street agrees to buy Investors Financial Services for US$4.5bn in 2007
• Banco Bilbao Vizcaya Argentaria agrees to buy Compass Bancshares for US$9.6bn in 2007
• ABN Amro agrees to be acquired by Barclays in US$91bn deal in 2007, with ABN's LaSalle Bank to be sold to Bank of America for US$21bn (agreement superseded by RBS consortium bid)
• UniCredit buys Capitalia for €22bn in 2007
• Wachovia buys A G Edwards for US$6.8bn in 2007
• ING pays US$2.67bn for Oyak Bank in 2007
• Kaupthing agrees to buy NIBC for €3bn in 2007
• HSBC agrees to buy 51% of Korea Exchange Bank from Lone Star Funds for US$6.3bn in 2007
• RBS, Santander and Fortis consortium pays £48bn for ABN Amro in 2007
• Swiss Life sells Banca del Gottardo to BSI for US$1.65bn in 2007
• ABN Amro sells Antonveneta to Monte dei Paschi di Siena for €9bn in 2007
• Westpac agrees to acquire St George for $18.5bn in 2008
• China Merchants Bank pays US$4.7bn for Wing Lung Bank in 2008
• Banco Santander agrees to buy UK mortgage lender Alliance & Leicester for £1.26bn in 2008
• Bank of Nova Scotia agrees to buy Canadian operations of E*Trade Financial Group for US$442m in 2008
• Commerzbank agrees to buy Dresdner Bank from Allianz for US$14.4bn in 2008
• Bank of America acquires Merrill Lynch for US$50bn in 2008
• Barclays buys Lehman Brothers' North American investment banking and capital markets arms for US$1.75bn in 2008
• Lloyds TSB acquires HBOS for £12.2bn in 2008
• Wells Fargo merges with Wachovia in 2008
• HBOS sells BankWest to Commonwealth Bank for $2.1bn in 2008

Activity before 2002 includes -

• National Australia Bank pays £976.5m for Yorkshire Bank in 1990
• Midland sells Thomas Cook to Westdeutsche Landesbank for £600m in 1992
• HSBC acquires Midland for £3.9bn in 1992
• Lloyds acquires TSB in 1995
• Chemical and Chase Manhattan merge in US$11.3bn deal in 1995
• Wells Fargo buys First Interstate Bancorp for US$12bn in 1996
• Travelers, Salomon Brothers and Smith Barney join in US$9bn merger in 1997
• First Union buys CoreStates Financial for US$17bn in 1997
• NationsBank acquires Barnett Banks for US$15bn in 1997
• Citigroup formed through US$82bn merger of Travelers Group and Citicorp in 1998
• GE Money buys Nissan Finance Australia in 1998
• Bank One and First Chicago NBD merge in US$29bn deal in 1998
• NationsBank (US) acquires BankAmerica (US) for US$66bn in 1998 - $580 billion assets
• TD Bank buys Canada Trust Financial Services from British American Tobacco (BAT) for C$8bn in 1999
• BNP merges with Paribas in 1999
• GM subsidiary GMAC buys commercial finance unit of Bank of New York for US$1.8bn in 1999
• Fleet Financial and BankBoston merge in US$16.2bn deal in 1999
• Fuji Bank, Dai ichi Kangyo and IBJ merge in 1999
• Swiss Life buys Banca del Gottardo from Sumitomo in 1999
• HSBC buys Republic Bank from Edmond Safra for £6.2bn in 1999
• HSBC acquires CCF for £6.8bn in 2000
• Royal Bank of Scotland acquires NatWest for £21 billion in 2000
• Barclays acquires Woolwich building society for £5.4bn in 2000
• Unidanmark acquired for €4.8bn by MeritaNordbanken in 2000
• ANZ sells Grindlays to Standard Chartered for £823m in 2000
• Danske Bank pays US$3.1bn for RealDanmark in 2000
• UBS pays US$11.8bn for PaineWebber in 2000
• Chase Manhattan buys JP Morgan for US$34bn in 2000
• Citizens Financial Group buys Mellon Bank for US$2.1bn in 2001
• Allianz acquires Dresdner for US$20.65bn in 2001

     exchanges

Exchange landmarks include -

• CME Group (Chicago Mercantile Exchange) agrees to buy New York Mercantile Exchange for US$9.4bn in 2008
• Nasdaq agrees to acquire Philadelphia Stock Exchange for US$652m in 2007
• Nasdaq agrees to buy Nordic exchange operator OMX for US$3.7bn in 2007
• Deutsche Börse agrees to buy International Securities Exchange Holdings (NY) for US$2.8bn in 2007
• Chicago Mercantile Exchange (1898) agrees to buy Chicago Board of Trade (est 1848) for US$8bn in 2006
• NYSE acquires Archipelago for about $US884m in 2005
• Australian Stock Exchange agrees to buy SFE Corp (futures exchange) for $2.25bn in 2006
• New York Stock Exchange and Euronext announce US$20bn merger in 2006

     credit cards

• Coles Myer credit card portfolio sold to GE Money for $180m in 1995
• GE Money pays US$1.2bn for 43% of Hyundai Capital Services and Hyundai Card in 2004
• Lloyds TSB sells Goldfish credit cards business to Morgan Stanley for £975m in 2005
• JP Morgan agrees to buy credit card business of Sears Canada for about C$2.3bn in 2005
• Capital One Financial acquires Hibernia National Bank for US$4.9bn in 2005
• Hudson's Bay Co. agrees to sell private-label credit card and related financial services arm to GE Money for US$370m in 2006
• Kohl's agrees to sell its private-label credit card accounts to JP Morgan Chase for US$1.5bn in 2006
• Capital One Financial agrees to acquire North Fork Bancorporation for US$14.6bn in 2006
• GM sells 51% stake in GMAC to Cerberus Capital Management, Citigroup and Aozora consortium for US$14bn in 2006
• Wachovia Corporation agrees to acquire Golden West Financial for US$26bn in 2006
• Dexia agrees to buy 75% of Turkish lender DenizBank for US$2.4bn in 2006

     insurance and investment

Insurance and funds management sector landmarks are -

• ING Groep buys retirement plan administrator CitiStreet for US$903m from Citigroup and State Street in 2008
• Berkshire Hathaway agrees to buy NRG NV reinsurance unit of ING Group for about €300m in 2007
• Aon agrees to sell Combined Insurance Co to ACE for US$2.4bn and Sterling Life Insurance to Munich Re for US$352m in 2007
• Nuveen Investments agrees to be acquired by Madison Dearborn consortium for US$5.75bn in 2007
• Citigroup agrees to buy fund manager Bisys for US$1.47bn in 2007
• QBE Insurance agrees to buy US arm of Winterthur from AXA for US$1.16bn in 2007
• QBE Insurance buys Praetorian Financial Group for $1.02bn in 2006
• Aviva agrees to buy AmerUs Group for US$2.9bn in 2006
• AXA agrees to pay Credit Suisse US$10.1bn for Winterthur Life in 2006
• Resolution agrees to pay US$6.7bn for the life units of Abbey National in 2006
• Mellon Financial buys Walter Scott & Partners for £215m in 2006
• National Australia Bank sells insurance assets in Hong Kong and Indonesia to AXA Asia-Pacific for $575m in 2006
• Merrill Lynch agrees to exchange asset management unit for
  49.8% stake in BlackRock in US$4.65bn transaction in 2006
• J P Morgan Chase agrees to sell Chase Insurance to Protective Life for about US$1.2bn in 2006
• GE sells reinsurance business to Swiss Re for US$6.8bn in 2005
• Old Mutual buys Skandia AB for US$5.7bn in 2005
• Britannic pays £835m for Resolution Life in 2005
• Schweizerisch Rueckversicherung buys CNA Financial for US$690m in 2004
• Chase Manhattan pays US$7.75bn for Robert Fleming
• AXA pays US$1.45bn for MONY in 2004
• Manulife buys John Hancock Financial for US$10.3bn in 2003
• St Paul Cos. agrees to buy Travelers Property Casualty for US$16bn in 2003
• Great West Lifeco acquires Canada Life Financial in C$7.3bn deal in 2002
• Sun Life Financial acquires Clarica Life in merger worth C$7.3bn in 2001
• HIH sells part of its domestic business to Allianz for $500m in 2000
• AXA buys Guardian Royal Exchange for £3.4bn in 1999
• Prudential buys M&G for £1.9bn in 1999
• Fairfax Financial buys TIG Holdings for US$847m in 1999
• Centrica pays £1.1bn for The Automobile Association in 1999
• Lloyds TSB acquires Scottish Widows for £6.7bn in 1999
• AMP pays $920m for UK fund manager Henderson Investors in 1998
• Fairfax Financial buys Crum & Forster from Xerox for US$565m in 1998
• XL pays US$2.9bn for Mid Ocean of Bermuda in 1998
• Commercial Union buys General Accident for £7.2bn in 1998
• HIH acquires FAI Insurance for $300m in 1998
• St Paul Companies pay £400m for Minet Holdings in 1988
• Great-West Lifeco pays C$3bn for London Insurance Group in 1997
• Aon pays US$1.23bn for Alexander & Alexander in 1996
• BAT pays £968m for Eagle Star in 1984

     leasing

Leasing sector landmarks include -

• Renault buys Europcar car leasing group in 1970
• RCA sells Hertz to UAL for US$587m in 1985
• Wagon-Lits purchases Europcar and sells 50% to Volkswagen in 1988
• Deutsche Bank buys Boullioun from Sumitomo Trust & Banking for US$120m in 1998
• Volkswagen buys Accor's 50% stake in Europcar in 1998
• Newcourt Credit acquires CIT for US$2.8bn in 1999
• GE Capital Corp agrees to acquire bankrupt Japan Leasing Corp for US$7bn in 1999
• Morgan Stanley buys AWAS (formerly Ansett Worldwide Aviation Services) in 2000
• Deutsche Bank sells Boullioun to WestLB for US$1.2bn in 2001
• WestLB sells Boullioun to Aviation Capital for US$2.5bn in 2005
• Merrill Lynch Global Private Equity, Clayton, Dubilier & Rice, and Carlyle Group pay US$15bn for Hertz car rental company in 2005
• Morgan Stanley sells AWAS to Terra Firma Capital Partners for US$2.5bn in 2006
• Pitney Bowes sells Oce Imagistics lease portfolio to Rabobank for US$280m in 2006
• Eurazeo pays €3.32bn for Europcar in 2006
• Pitney Bowes agrees to sell its leasing unit to Cerberus Capital Management for US$745m in 2006
• General Electric pays US$1.05bn for rest of Japanese leasing company Sanyo Electric Credit in 2007
• Terra Firma buys Pegasus Aviation Finance for US$5bn in 2007
>Royal Bank of Scotland sells sold Angel Trains rolling-stock leasing business to Babcock & Brown consortium for £3.5bn in 2008.

     studies

A supplementary note points to other studies on M&A in the finance sector and to the history of individual enterprises, such as Gary Dymski's The Bank Merger Wave: The Economic Causes & Social Consequences of Financial Consolidation (Armonk: ME Sharpe 1999) and Bank Mergers and Acquisitions (New York: Kluwer 1998) edited by Yakov Amihud & Geoffrey Miller.





   next page (media)