AIB Group PLC's acquisition of a €5.4 billion loan book from Ulster Bank Ireland DAC was the biggest transaction in the European financials sector in a subdued first six months of the year, S&P Global Market Intelligence data shows.
Dublin-based AIB agreed to acquire a portfolio of tracker mortgages from Ulster Bank, whose London-based parent NatWest Group PLC is exiting the Republic of Ireland. The deal is expected to help AIB in its pursuit of a return on tangible equity of more than 9% in 2023, according to S&P Global Ratings.
Other large transactions in the first half included Société Générale SA unit ALD SA's €4.9 billion purchase of Netherlands-based LeasePlan Corp. NV, Jyske Bank A/S's €4.4 billion acquisition of Svenska Handelsbanken AB (publ)'s Danish business and Royal Bank of Canada's €1.84 billion deal for London-based wealth manager Brewin Dolphin Holdings PLC.
In total, 500 deals were made during the first half, representing a 12.9% year-over-year decline. Fewer deals were inked in the second quarter than in the first, as the impact of Russia's invasion of Ukraine and rising inflation weighed on investor confidence.
Four of the 10 largest deals in the sector involved U.K.-headquartered targets.
Deal-making recovered somewhat in June, with 94 transactions recorded. This is the highest number since January. Even so, this figure was down 18.3% from the 115 deals reached in June 2021.
Three of the top 10 deals in the first half were announced in June, including Euromoney Institutional Investor PLC's
The insurance segment was the most active in June, accounting for 36.2% of deals. Almost one-third of deals during the month involved a U.K.-based target.
* Read more about AIB Group's M&A transaction history
* Download an Excel template on M&A and IPO transaction comparables
