The Impact of the New Regulations on Banking Mergers and Acquisitions in Europe

The crisis in the fall of 2008 represented a radical change in the banking M&A market, not only in terms of transactions volume but also in types of transactions and players (States, restructuring funds…). In a context of financial crisis management and implementation of new regulations (Basel III, MiFID II, AIFM…), European banks have had to implement large-scale measures since 2008 (including deleveraging, recapitalisations including State aid in some cases, cost rationalisations) to improve their solvency, liquidity and profitability.

In a time of economic uncertainty, external growth transactions are not among the priority projects in the banks’ strategic plans. However, an upturn in the European banking M&A market could occur when the strategic and financial interest of these transactions coincides with the search for growth drivers and the stabilisation of the economic and regulatory environment. Some of these transactions might be performed by new players, with a growing role of strategic and financial investors from emerging countries.