UniCredit and Commerzbank: exploring the potential M&A transaction

M&A activity has been subdued over the past few years with factors such as economic uncertainty, stricter regulations, and higher interest rates at play. These dynamics have resulted in soaring transaction financing costs, lower stock valuations, and hesitation among many deal makers. Globally, second quarter M&A transactions were flat compared to the first quarter. However, the European M&A showed signs of recovery with mega deals such as that of Abu Dhabi National Oil Company's acquisition of Covestro AG and BBVA’s acquisition of Banco de Sabadell, with transaction values of €14.4B and €12.1, respectively, driving the overall value of transactions.