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How Have Total M&A Deals Closed By Major European Investment Banks Trended In The Last 5 Quarters?

The largest European investment banks witnessed a sharp improvement in M&A deal volumes for Q3 2016 - extending gains to their global market share from the exceptionally low levels of late 2015. The chart below captures the total size of M&A deals completed by the four largest European investment banks since Q3 2015. The green-to-red shading for figures along a row show the variations in deal size for a particular bank over this period.

IB_QA_EU_MnA_Comp_SizeChange_16Q3

M&A advisory deal volumes for individual banks were taken from Thomson Reuters' latest investment banking league tables . Incidentally, this was the best quarter for these four banks in terms of combined market share since the economic downturn of 2008. The table below captures the respective market shares for each of these banks over the last five quarters. The green-to-yellow shading for figures in a column should help compare the relative standings of these 4 banking giants in a particular quarter.

IB_QA_EU_MnA_Comp_ShareChange_16Q3

It should be noted that the largest M&A deals employ many investment banks, so the market size and share figures shown here are not exclusive.

It should be noted that the largest M&A deals employ many investment banks, so the market size and share figures shown here are not exclusive.

Notably, the average market share for these banks has doubled from 8.8% to 17.6% over this period - something we attribute to the role of these banks in closing some of the largest M&A deals globally over recent quarters. While Credit Suisse has had strong run over most of this period, it fell to the fourth position in the last quarter. However, it should be noted that the bank is currently a part of teams working on the three biggest M&A deals announced this year - Monsanto/Bayer, Syngenta/CNAC Saturn and Spectra Energy/Enbridge. This will boost Credit Suisse's M&A market share over coming quarters.

On the other hand, UBS, saw a sizable jump in market share this quarter. As the largest Swiss bank has a relatively risk-averse approach and does not finance M&A deals on which it advises, it usually reports a smaller market share. But the bank's market share benefited in Q3 2016 from its role in closing the £24.3-billion acquisition of ARM Holdings by SoftBank. You can see how changes to UBS's share of completed M&A deals globally affect our estimate for the bank's share price by modifying the chart below.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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