European bank M&A tracker: Q3 deal activity slips to 4-year low

The aggregate transaction value of bank M&A in Europe fell to a four-year low in the third quarter due to a lack of big-ticket deals, S&P Global Market Intelligence data shows.

There were 34 banking M&A transactions with an aggregate value of €1.14 billion in the quarter, down from 45 deals worth €4.91 billion a year earlier. Aggregate deal value has declined for the past three quarters, according to Market Intelligence data.

S-Pankki Oyj's (S-Bank) takeover bid for Oma Säästöpankki Oyj (Oma Savings Bank) was the largest deal during the quarter at €571.4 million.

Finland-based S-Bank secured 96.78% of domestic peer Oma Säästöpankki Oyj through its all-cash bid. It intends to delist it from Nasdaq Helsinki.

A home purchase plan portfolio sold by Shariah-compliant Gatehouse Bank PLC to US-based Waterfall Asset Management LLC was the second-largest deal. The portfolio comprises balances totaling £405 million, making it the largest Islamic home finance portfolio to change hands in the UK to date, the company said in a press release.

ING Groep NV's acquisition of a roughly 40% stake in Singular Bank SAU, the Dutch bank's debut in the Spanish private banking space, was among the other notable deals in the quarter.

Blackstone Inc. and DNB Bank ASA agreed to sell Estonia-based Luminor Holding AS to OTP Bank Nyrt. It was Hungary-based OTP's biggest ever deal, per Scope Ratings, though it has come under scrutiny due to the bank's ongoing presence in Russia.

Spain's Banco Bilbao Vizcaya Argentaria SA took full control of Altura Markets Sociedad de Valores SA, purchasing the remaining 50% stake in its futures and options brokerage joint venture with France-based Société Générale SA. BBVA expects the deal to strengthen its markets services business while it continues to work with SocGen, which will provide technology services and access to clearing houses over the coming years.

Switzerland-based private bank Bank J. Safra Sarasin AG bought the remaining stake it does not already own in Saxo Holding AG, the parent company of Saxo Bank A/S. It will strengthen its position as a major player in online trading and investing.

Several asset and stake sales also made it to the list, with Raiffeisen Gruppe Switzerland having sold a 22.7% stake in fintech derivatives specialist Leonteq AG, trimming its interest to 7%.

Morrow Bank AB offloaded some noncore assets and nonperforming loans of MedMera Bank AB, the consumer lender it acquired in early July. The transactions aim to reduce balance sheet risk, while key parts of MedMera Bank, such as performing loans, deposits, customers, brand and staff are retained.

A group of investors led by Advent International LP acquired FNZ Group Ltd.'s FNZ Bank SE unit in Germany.

Bank M&A could have a strong end to the year, particularly if Intesa Sanpaolo SpA succeeds in its bid for Banca Monte dei Paschi di Siena SpA. Intesa's latest proposal is valued at more than €30 billion and would be one of the largest-ever European bank takeovers.

Monte dei Paschi's attempts to fend off the offer by pursuing its own takeover of two smaller banks, Banco BPM SpA and Banca Generali SpA, is struggling to gain support from investors.