10 Banking M&A Deals Announced In December 2020

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10 Banking M&A Deals Announced In December 2020

New S&P Analysis: Banking M&A 2020 Deal Tracker: 10 deals announced in December 2020

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Q3 2020 hedge fund letters, conferences and more

According to a new analysis from S&P Global Market Intelligence, U.S. banks and thrifts announced 10 deals in December 2020 as deal activity continued to rebound from single-digit monthly tallies following the initial outbreak of the coronavirus pandemic.

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Key highlights from today's banking M&A analysis include:

  • At least 10 banking M&A deals were announced per month in four of the last five months of 2020.
  • During 2020, only 112 deals were announced for an aggregate $27.67 billion, compared with 258 deals worth $55.05 billion in 2019.
  • The median deal value to tangible common equity ratio for deals announced in 2020 was 132.4%, down from 158.1% in 2019.

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Banking M&A 2020 Deal Tracker

U.S. banks and thrifts announced only four deals in November, the lowest monthly total since May during the depths of the initial COVID-19 shutdowns. While deal activity has been muted in 2020 due to the pandemic, U.S. banks had announced at least 10 deals per month for the previous three months.

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During the first 11 months of this year, the industry saw 100 deal announcements worth an aggregate $21.51 billion, compared with 235 deals worth $54.23 billion over the same period in 2019. The median deal value to tangible common equity ratio for deals announced in 2020 was 130.7%, down from 156.0% for the same period in 2019.

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On Nov. 16, PNC Financial Services Group Inc. announced that it agreed to buy BBVA USA Bancshares Inc., a unit of Banco Bilbao Vizcaya Argentaria SA, for $11.57 billion at a deal value to tangible common equity ratio of 131.3%. This was both the largest deal announcement of 2020 and the largest U.S. bank deal since BB&T Corp. and SunTrust Banks Inc. announced their blockbuster $28.28 billion merger of equals in February 2019, becoming Truist Financial Corp.

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Read the full article here by S&P 500 Global Market Intelligence

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Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

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