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HKEX drops LSE bid; JPMorgan launches Singapore trust company

S&P Global Market Intelligence offers our top picks of banking news stories and more published throughout the week. Please note that some entries may have links to third-party sources that require a subscription.

HKEX scraps bid for LSE; Indian central bank rejects Indiabulls Housing Finance/Lakshmi Vilas Bank deal

* Hong Kong Exchanges & Clearing Ltd. dropped its proposed £31.6 billion acquisition of London Stock Exchange Group PLC amid shareholder concerns about debt and strategy outside Asia, The Daily Telegraph reported. Some HKEX shareholders believed that the deal could shift the Hong Kong exchange's focus away from Asia and a higher offer from the HKEX for the London rival would force it to accumulate risky debt.

* The Reserve Bank of India rejected the proposed merger between Lakshmi Vilas Bank Ltd. and Indiabulls Housing Finance Ltd. Although the reasons behind the rejection were not disclosed, the move comes after the two banks came under increased scrutiny following allegations of wrongdoings against the housing finance company's promoters.

JPMorgan launches Singapore trust company; Vietcombank gets approval for Australian branch

* JPMorgan Chase & Co. established its first Asia trust company in Singapore to offer wealth management services to high-net-worth individuals, Reuters reported.

* Joint Stock Commercial Bank for Foreign Trade of Vietnam, or Vietcombank, received approval from the State Bank of Vietnam to open a branch in Australia within 12 months, Viet Nam News reported. The lender is looking to open the branch in Sydney.

M&A activity

* Australian financial services company IOOF Holdings Ltd. sold its stake in Perennial Value Management Ltd. for an undisclosed sum. The company had a 52.4% equity interest in Perennial Value Management, and 42.4% voting rights and dividend entitlements.

* India-based Yes Bank Ltd. reportedly held discussions with U.S.-based Microsoft Corp. and two other global technology companies for a strategic investment in the private sector bank, Mint reported. Yes Bank could sell up to a 15% stake through an issuance of new equity shares, depending on the outcome of the talks.

* DBS Group Holdings Ltd. is considering making a takeover bid for PT Bank Permata Tbk. This could be the Singaporean bank's second attempt to acquire the Indonesia-based lender, Bloomberg News reported.

Potential IPOs

* China Everbright Group Ltd. plans to restructure its business and launch an IPO in Hong Kong in 2020, Reuters reported. The Chinese state-owned conglomerate could raise up to US$3 billion from the planned IPO.

* Australia's Judo Bank Pty Ltd. said it remains open to listing its shares on the country's stock exchange in the next 12 to 18 months after having raised A$540 million in two funding rounds, The Australian reported. The bank has so far issued A$600 million of loans, with plans to reach the A$1 billion mark by 2019-end, said Joseph Healy, the bank's co-CEO.

Debt issuance

* Mitsubishi UFJ Financial Group Inc. issued A$500 million of green bonds to become the first Japanese financial institution to issue green bonds denominated in Australian dollars, The Nikkei reported.

* Commonwealth Bank of Australia issued £250 million of floating-rate notes due in October 2020 under its US$70 billion euro medium-term note program. The lender also plans to raise about A$750 million through the issuance of Tier 1 hybrid security.

* Westpac Banking Corp. issued £250 million of floating-rate instruments due Oct. 9, 2020. The instruments were issued Oct. 9, a day after the lender also issued £250 million of floating-rate instruments with similar terms.

In other news

* Australia & New Zealand Banking Group Ltd. said a surge in customer remediation provisions are set to impact its posttax cash profit for the fiscal second half. The bank expects customer remediation charges to stand at A$559 million after tax in the second half, compared with A$123 million in the first half.

* AMP Ltd. will merge its banking and Australian wealth management business units into a single organization called AMP Australia.

* Hong Kong banks and their regulator are considering loan relief measures for small businesses that are hit by the city's ongoing social unrest, the Hong Kong Economic Journal reported.

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