Noted: Financial M&A drivers for 2010
Across the different bits of financial services – such as fund management, broker-dealers, insurance, and trading systems – mergers and acquisitions fell sharply in 2009. But Freeman & Co outlines 10 drivers that should make this a busier year for dealmaking:
“1. Banks and insurance companies continue to assess whether their asset management units are core to their business, especially those that have stand alone brands or are in non-core markets
2. Large transformational asset management deals will diminish, but deals in the $3-30 billion AUM range will increase from current lows
3. Broker-dealer consolidation will continue in 2010 as firms look for combined efficiencies as well as revenue and income growth opportunities in a tough operating environment
4. Sub-scale alternative trading systems and dark pools will be consolidated by their larger competitors or rolled up into exchange-backed or bank-backed platforms
5. Organized exchanges will re-start their M&A activities, setting their sights on emerging market exchanges and technology firms in order to better position themselves to fend off competition from Alternative Trading Systems (ATS) and Multilateral Trading Facilities (MTF)
6. Selected insurance companies will shed non-core assets and look to streamline and/or hedge individual product portfolios to limit liabilities
DealZone Daily
British publisher Informa is in talks to buy its German rival Springer Science and Business Media from private equity firms Candover and Cinven, the FT says.
Informa initiated talks with Springer three weeks ago and is considering an all cash bid, according to its story, but private equity firms including Apax and EQT are still looking at the business.
For the latest deals news from Reuters, click here.
And here are the top stories from the newspapers (some external links may require subscription):
French fashion group PPR is planning to sell its retail businesses, including books and music chain FNAC and discount furniture business Conforama, as soon as it can, chief executive Francois-Henri Pinault told the WSJ.
Insurance broker Marsh & McLennan is closing in on a deal for HSBC Insurance Brokers, the UK’s ninth largest broker, valued at 150 to 200 million pounds, the Daily Telegraph says.
