Deals relating to innovation decreased significantly in the private banking industry in H2 2021

In the second half of 2021 the number of deals relating to innovation decreased significantly by 78.6% from the same period in 2020.

This marks a deceleration in growth from the 48.8% decrease in deals that occurred in H1 2021 relative to the same period a year earlier.

GlobalData’s deals database looks at mergers, acquisitions and venture capital and private equity investments taking place daily between thousands of companies across the world.

During second half of 2021, deals relating to innovation accounted for 6.5% of all deals taking place in the sector. This represents a decrease from the figure of 28.6% in second half of 2020.

GlobalData's thematic approach to sector activity seeks to group key company information on investments to see which industries are best placed to deal with any issues they may encounter.

These themes, of which innovation is one, are best thought of as "any issue that keeps a CEO awake at night", and by tracking them, it becomes possible to ascertain which companies are leading the way on specific issues and which ones have some work to do.

There were 287 deals recorded involving top private banking companies in the three months to April with a number of high profile merger, sponsorship, venture financing, equity offering, asset transaction, debt offering, acquisition and private equity deals.

That’s according to GlobalData’s Financial Deals database, which tracks market activity across a variety of sectors and deal types.

The deals below only include those that have been completed – so excludes rumours or those that have been agreed but not yet executed.

The figures, which cover the top private banking companies, show the market in the US to be the most active, with 81 deals taking place over the last three months. That was followed by India, which saw 30 deals.

Below are some of the largest completed deals to have taken place in the last quarter.

The Toronto-Dominion Bank (TD Bank) To Acquire First Horizon - 28 February ($13,400m)

The Toronto-Dominion Bank (TD Bank), a Canada-based company that provides retail and corporate banking, wealth management, and related financial solutions, has announced to acquire First Horizon Corp, a US-based bank-holding company, which offers banking, wealth management, and capital market solutions through its primary subsidiary First Horizon Bank, for a cash transaction valued at USD13.4 billion.

TD to acquire First Horizon in an all-cash transaction valued at USD13.4 billion, or USD25.00 for each common share of First Horizon.

Following the closing of the transaction, Bryan Jordan, President and Chief Executive Officer of First Horizon, will join TD as Vice Chair, TD Bank Group, reporting to Bharat Masrani and will join the TD Senior Executive Team. He will also be named to the Boards of Directors of TD's U.S. Banking entities as a director and Chair. Jordan will continue to be based in Memphis.

TD Securities and J.P. Morgan served as financial advisors and Simpson Thacher & Bartlett LLP and Torys LLP served as legal advisors to TD. Morgan Stanley & Co. LLC served as financial advisor and Sullivan and Cromwell LLP served as legal advisor to First Horizon.

Berkshire Hathaway to Acquire 100% Stake of Alleghany for USD11.6 Billion - 21 March ($11,600m)

Berkshire Hathaway Inc., a conglomerate holding company engaged in insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, retailing and services, has entered into a definitive agreement to acquire all outstanding shares of Alleghany Corporation, an investment holding company that operates primarily in property and casualty reinsurance and insurance, for USD848.02 per share in cash. Both the companies are based in the US.

The transaction, which was unanimously approved by both Boards of Directors, represents a total equity value of approximately USD11.6 billion.

Goldman Sachs & Co. LLC is acting as financial advisor and Willkie Farr & Gallagher LLP as legal advisor to Alleghany. Munger, Tolles & Olson LLP is acting as legal advisor to Berkshire Hathaway.

The transaction is expected to close in the fourth quarter of 2022, subject to customary closing conditions, including approval by Alleghany stockholders and receipt of regulatory approvals.

Intesa Sanpaolo, Generali Italia and UniCredit Sell 60% Stake in Bank of Italy for USD4.77 Billion - 22 April ($4,778m)

Intesa Sanpaolo SpA, Generali Italia SpA and UniCredit SpA, providers of financial services, have sold 60% stake in Bank of Italy, SpA, a central bank of Italy, for EUR4.4 billion (USD4.77 billion). All the companies are based in Italy.

Rothschild & Co acted as financial advisor to Intesa Sanpaolo, UniCredit and Generali.

RBC Wealth Management to Acquire 100% Stake in Brewin Dolphin - 31 March ($2,083m)

RBC Wealth Management, a wholly owned subsidiary of Royal Bank of Canada (RBC), has recommended cash offer to acquire 100% stake in Brewin Dolphin Holdings PLC, a UK-based provider of wealth management services, for GBP5.15 per share, implying an equity value of approximately CAD2.6 Billion (USD2,083.07 million) on a fully diluted basis.

The consideration: represents a premium of 62% to the closing price of GBP3.18 per Brewin Dolphin Share on March 30, 2022, represents a premium of 54% to the volume-weighted average price of GBP3.33 per Brewin Dolphin Share for the six-month period ended March 30, 2022; and values Brewin Dolphin at 2.8% of its GBP55 billion assets under management as at February 28, 2022.

Barclays PLC, Liberum Capital Ltd and Lazard Ltd are acting as financial advisors and Travers Smith LLP is acting as legal advisor to Brewin.

RBC Capital Markets is acting as financial advisor and Norton Rose Fulbright LLP is acting as legal adviser to RBC and Bidco.

The acquisition is subject to a number of customary conditions specified in the Rule 2.7 Announcement, including regulatory approvals and Brewin Dolphin shareholder approval.

The transaction is expected to close during the third quarter of 2022.

Commonwealth Bank of Australia to Sell Bank of Hangzhou for USD1.31 Billion - 01 March ($1,310m)

Commonwealth Bank of Australia, an Australia-based provider of retail and corporate banking and other financial solutions, has agreed to sell Bank of Hangzhou Co Ltd, a provider of commercial banking products and services, for a consideration of USD1.31 billion. Both the companies involved in the transaction are based in China.

CBA said it would sell down its shareholding to entities controlled by the Hangzhou municipal government, advancing a strategy that has been adopted by most Australian retail banks to do away with non-core operations and focus on essential services at home.

The completion of the deal, currently expected in mid-2022.

Housing Development Finance Corporation to Merge with HDFC Bank - 04 April ($58,519m)

Housing Development Finance Corporation Ltd (HDFCL), a deposit-taking non-banking financial institution that offers housing finance solutions, has agreed to merge with HDFC Bank Ltd., a provider of personal and corporate banking, private and investment banking, and other related financial solutions. Both the companies are based in India.

Following the transaction, the shareholders of HDFCL as on record date will receive 42 shares of HDFC Bank for 25 shares of HDFCL, HDFCL's shareholding in HDFC Bank will be extinguished as per the scheme of amalgamation upon the Scheme becoming effective.

As part of the transaction, HDFCL's wholly-owned subsidiaries HDFC Investments Limited and HDFC Holdings Limited, will merge into HDFCL.

Post the transaction, HDFC Bank will be 100% owned by public shareholders and existing shareholders of HDFCL will own 41% of HDFC Bank.

Currently, HDFCL, along with two of its wholly-owned subsidiaries (HDFC Investments and HDFC Holdings), holds 21% of paid-up equity share capital of HDFC Bank.

HDFCL have a total asset under management of INR5,260 billion and a market cap of INR4,440 billion, and HDFC Bank will have a market cap of INR8,350 billion.

Morgan Stanley India Company Private Ltd. Were financial advisors to HDFC Bank solely for the purpose of providing a fairness opinion on the valuation done by the valuer for the proposed transaction. Bank of America Merrill Lynch (BofA) Securities were financial advisors to HDFCL solely for the purpose of providing a fairness opinion on the valuation done by the valuer for the proposed transaction.

J.P. Morgan, Goldman Sachs, Citi, Nomura, CLSA, BNP, HSBC, ICICI Securities and Edelweiss acted as financial advisors to HDFC Bank. Credit Suisse, Kotak Securities, Jefferies, Arpwood, Motilal, Axis, JM Financial, IIFL and Ambit acted as financial advisors to HDFCL.

Wadia Ghandy & Co., Cravath, Swaine & Moore LLP acted as legal advisors to HDFC Bank and AZB & Partners, Argus Partners and Singhi & Co. Acted as the legal advisors to HDFCL.

Deloitte Touche Tohmatsu India LLP and Mr. Harsh Chandrakant Ruparelia (Registered Valuer) were appointed as valuers by HDFC Bank. Bansi S. Mehta & Co. And Ms. Drushti Desai (Registered Valuer) were appointed as valuers by HDFCL respectively.

Dhruva Advisors LLP were the tax advisors to HDFCL and HDFC Bank.

The transaction completion is subject to shareholders, creditors and regulatory approvals including from RBI, IRDAI, CCI, SEBI and Stock Exchange, and the closing is expected to be achieved by September 2023, subject to completion of regulatory approvals and other customary closing conditions.

Midea Real Estate to Merge With China Construction Bank For USD1.6 Billion - 21 March ($1,572m)

Midea Real Estate Holding Limited, a real estate developer together with its subsidiaries, has entered into an agreement to merge with China Construction Bank Corporation (CCB) Guangdong Province Branch (CCB), a financial institution, for a consideration of RMB10 billion (USD1.6 billion). Both companies are based in China.

The acquisition enable the Midea Real Estate to provide sufficient funding support for its development in related business.

Under the terms of the agreement, CCB will grant the Group a loan assistance amount of approximately RMB2 billion to finance the construction for the affordable rental housing projects and as general working capital and a housing mortgage financing amount of RMB10 billion for personal housing mortgage in respect of the Group's property development projects, respectively.

Fulton Financial to Merge with Prudential Bancorp - 02 March ($142m)

Fulton Financial Corp has signed an agreement to merge with Prudential Bancorp, Inc. Both the companies involved in the transaction are bank holding companies.

Under the terms of the Merger Agreement, Prudential shareholders will receive Fulton common stock based on a fixed exchange ratio of 0.7974 Fulton shares and USD3.65 in cash for each Prudential share they own. The implied value of the transaction, based on the 10-day volume weighted average stock price of USD18.01 for Fulton's common stock for the period ending March 1, 2022, is approximately USD142.1 million in the aggregate, or USD18.01 per Prudential common share. The transaction is expected to qualify as a tax-free exchange with respect to the stock consideration received by Prudential shareholders. In aggregate, approximately eighty percent (80%) of the transaction consideration to Prudential common shareholders will consist of Fulton common stock, with the remaining twenty percent (20%) payable in cash.

The merger is expected to close in the third quarter of 2022, after satisfaction of closing conditions described in the Agreement, including the receipt of customary regulatory approvals and the approval by Prudential's shareholders. Following the closing, Prudential's bank subsidiary, Prudential Bank, will be merged into Fulton's bank subsidiary, Fulton Bank, N.A.

Stephens Inc is acting as financial advisor, and Barley Snyder LLP is acting as legal counsel to Fulton. Keefe, Bruyette & Woods, Inc. Is acting as financial advisor and Silver, Freedman, Taff & Tiernan LLP is acting as legal advisor to Prudential, for the transaction.

Kuwait Projects Company Holding (KIPCO) to Merge with Qurain Petrochemical Industries - 14 March

Kuwait Projects Company Holding K.S.C.P. (KIPCO), a provider of financial services and involved in media, manufacturing, and real estate sectors, has reached a preliminary agreement to merge with Qurain Petrochemical Industries Co, a petrochemicals company. Both the companies involved in the transaction are based in Kuwait.

VTB to Merge with Otkritie, Russian National Commercial Ban(RNCB) and Kommersant - 29 April

VTB Bank, a provider of financial services, has agreed to merge with Otkritie, a provider of commercial banking services, Russian National Commercial Bank, a banking company and Kommersant, a publishing company. All the companies involved in the transaction are based in the Russia.