trending Market Intelligence /marketintelligence/en/news-insights/trending/3pfewxyzbax4zi7atct8xg2 content esgSubNav
In This List

Asia-Pacific financial institutions M&A interest tracker

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Asia-Pacific financial institutions M&A interest tracker

This tracker covers possible deals reported by media across the Asia-Pacific region over a certain period. The information is gathered from various news sources, excludes confirmed deals and is limited to potential acquisitions or sales involving companies or operations in the region. Click here to read the previous month's article.

Potential deals in the insurance sector and in other nonbanking sectors surfaced in May as South Korean financial groups eyed possible life insurance acquisitions and Australian banks continued to divest their stakes in noncore assets.

Three major South Korean financial groups are interested in acquiring stakes in life insurers as a period of slow economic growth and low interest rates has impacted banks' profits. The life insurance industry offers the potential for further growth given the country's ageing population.

Shinhan Financial Group Co. Ltd., KB Financial Group Inc. and Hana Financial Group Inc. have expressed interest in a number of life insurers, including ING Life Insurance Korea Ltd. The Korea Times reported May 8. Shinhan Financial is still pursuing a stake in ING Life Insurance even after its previous bid to acquire a majority stake in the life insurer was put on hold when MBK Partners Ltd. asked the group to pay more for the stake. KB Financial and Hana Financial are also reportedly considering asking MBK Partners to let them conduct due diligence on ING Life.

KB Financial and Shinhan Financial are said to have also been approached by lead managers hired by China's Anbang Insurance Group Co. Ltd. about their interest in buying stakes in TONGYANG Life Insurance Co. Ltd. and ABL Life Insurance Co. Ltd. Anbang is looking to sell its controlling stakes in the two insurers. The company is working on unwinding its overseas investments after Chinese regulators seized control of the insurer in February.

Below is a snapshot of May reports of possible deals compiled by S&P Global Market Intelligence.

SNL Image

Regulatory concerns have also driven China's Tongchuangjiuding Investment Management Group Co., Ltd. to consider selling a 20% to 40% stake in Hong Kong-based insurer FTLife Insurance Co. Ltd., Caixin reported May 2. The former is under investigation in China for alleged violations. The investigation sparked regulatory concerns in Hong Kong and regulators questioned the company's eligibility to own FTLife Insurance.

Meanwhile, another South Korean insurer, Seoul-based MG Non-Life Insurance Co. Ltd., has drawn interest from a consortium of Mirae Asset Daewoo Co. Ltd. and Japan's ORIX Corp., FNTIMES in South Korea reported May 24. The consortium submitted a letter of intent to participate in a rights issue and debt refinancing deal for the troubled insurer, which is currently under watch by regulators for balance sheet improvement efforts. Some foreign investors are also said to be interested in acquiring MG Non-Life Insurance.

The insurance space was also active in India, where a number of Indian insurers had bid for a significant stake in IDBI Federal Life Insurance Co. Ltd. Max Life Insurance Co. Ltd. and Exide Life Insurance Co. Ltd. were short-listed to acquire a stake in IDBI Federal Life Insurance after they submitted binding bids in April, The Economic Times reported May 1.

The race heated up when Aditya Birla Sun Life Insurance Co. Ltd. matched Max Life's bid, valuing the company at more than 60 billion Indian rupees, The Economic Times reported May 21.

State Bank of India plans to sell stakes in SBI General Insurance Co. Ltd., SBI Card and SBI Capital Markets Ltd. over the next two years, the Press Trust of India reported May 22. The Indian bank is looking to sell a stake of about 24% to 49% in SBI Capital Markets and a 3% to 5% stake in SBI General Insurance.

The Indian lender was not the only bank divesting stakes in noncore assets. Australian banks continued their divestment exercises with National Australia Bank Ltd. planning to divest its wealth management business by the end of 2019. The bank is exploring options including a demerger, an IPO or a trade sale for its advice, platform and superannuation and asset management businesses, the bank said during a May 3 media briefing. The bank will keep its broking and wealth management business JBWere and online investing platform NAB Trade.

Joining NAB in divesting noncore assets is Commonwealth Bank of Australia, which is said to be considering divesting all of its Colonial First State business after placing the asset management part of the operations up for sale, The Australian reported May 9. The bank may decided on a possible sale by the end of 2018.

Westpac Banking Corp. may have found an interested buyer in its boutique funds management investment unit Ascalon Capital Managers Ltd. Generation Development Group Ltd., formerly known as Austock Group, is in discussions to acquire Ascalon, The Australian Financial Review's Street Talk blog reported May 9. Westpac is reportedly not talking to any other potential buyers. The bank had tried to sell Ascalon in 2017 but failed to find a buyer. Generation Development Group said in a May 10 stock exchange filing that it explores potential investments in financial services companies "from time to time," but declined to comment specifically on media speculation. The company added that had not signed a binding agreement with any party on any potential investment.

Moreover, Australia & New Zealand Banking Group Ltd. has received final bids for its New Zealand-based life insurance business OnePath Life (NZ) Ltd., The Australian reported May 11. Partners Life Ltd. is said to have submitted a bid, while U.S.-based American International Group Inc. may have also submitted a final bid.

Further articles about other deal possibilities

Report: Australia's Afterpay Touch seeks share sale

Ensurance reviewing offers for Australian brokerage assets

S&P Global eyes bolt-on deals under $100M, expansion into China

Kenanga Investment Bank begins talks to buy stockbroking business

Report: Taurus Investment & Securities likely to get new top shareholder

Report: StanChart pitching $1.5B of private equity assets to buyers

Report: Credit Saison, Temasek eyeing FINO Paytech stake

Report: Kuwait's Noor Financial in talks to sell part of Meezan Bank stake

Report: Inditrade Capital to sell equity broking biz to Choice International

Noor Financial seeks regulatory approval to sell part of Meezan Bank stake

Report: Blackstone, Warburg Pincus eye stakes in India's Max Financial

Report: 2 front-runners emerge in bid to acquire IDFC Asset Management

Report: Singapore's Temasek eyes stake in Indian payments platform

Report: China CITIC Bank eyes purchase of Belarusian lender

Report: DZ Bank eyes portfolio sales from transport-focused unit DVB