General Motors (NYSE: GM) has agreed to sell Opel/Vauxhall, its European business, to French carmaker PSA Group (EPA: UG) for €2.2 billion, a deal that will consolidate the owner of Peugeot’s position in Europe and lead to GM’s exit from the continent.
The transaction also comes with an interesting corollary: BNP Paribas Personal Finance will join PSA in a 50/50 joint venture to buy GM’s European financial operations for €900 million, representing a 0.8x multiple on the unit’s €1.2 billion book value at the end of 2016.
From PSA’s perspective, the addition of Opel/Vauxhall and its €17.7 billion in 2016 revenue will give the company a 17% market share. But BNP Paribas (EPA: BNP) emerges as the big winner from the deal, as the French bank is now able to consolidate the GM financing unit’s €9.6 billion in existing loans and 1,800 European dealerships with its existing auto loans business, which includes leasing unit Arval and insurance division Cardif.
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But where does BNP Paribas stack up against other acquisitive investment banks operating in Europe?
The bank’s hardly been an active acquirer of late. The acquisition of Opel/Vauxhall’s financing operations represents its first deal since the 2015 pickup of the fund administration arm of Credit Suisse, per the PitchBook Platform. But with a flurry of activity in the five years before that, BNP Paribas still finds itself in a lofty place on this list of the most acquisitive investment banks in the European M&A space since the start of 2010:
From an advisory perspective, BNP Paribas clocked time on 49 deals last year, per PitchBook’s 2016 Annual Global League Tables. That’s good for sixth-most in Europe behind the likes of Deloitte, Lazard and Goldman Sachs.
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Article by Adam Putz, PitchBook