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May 9, 2022

These were the biggest banks, payment providers, cards programmes and processors deals in the three months to April

GlobalData research analyses the latest banks, payment providers, cards programmes and processors sectors deals

By Data Journalism Team

There were 198 deals recorded involving top banks, payment providers, cards programmes and processors 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 banks, payment providers, cards programmes and processors companies, show the market in the US to be the most active, with 51 deals taking place over the last three months. That was followed by India, which saw 22 deals.

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

Acquisitions

The Toronto-Dominion Bank (TD Bank) To Acquire First Horizon - 28 February ($13.4bn)

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.

Intesa Sanpaolo, Generali Italia and UniCredit Sell 60% Stake in Bank of Italy for $4.77bn - 22 April

Intesa Sanpaolo SpA, Generali Italia SpA and UniCredit SpA, providers of financial services, have sold 60% stake in Bank of Italy a central bank of Italy, for €4.4bn ($4.77bn). All the companies are based in Italy.

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

Commonwealth Bank of Australia to Sell Bank of Hangzhou for $1.31bn - 01 March

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.

BPER Banca to Acquire 80% Stake in Banca Carige for $1.27bn - 14 February

BPER Banca S.p.A., a provider of banking services to individuals, families, companies and freelancers, has signed the acquisition agreement to controlling interest of approximately 80% of the share capital of Banca Carige S.p.A. - Cassa di Risparmio di Genova e Imperia, a provider of various banking products and services, from Interbank Deposit Protection Fund (FITD) and the Voluntary Intervention Scheme (VIS and, together with FITD, the Selling Shareholders), for €1.128bn ($1.27bn). All companies are based in Italy.

The Agreement, signed after completion of the confirmatory due diligence conducted on CARIGE by BPER Banca, replicates the main terms and conditions included in the non-binding offer submitted by BPER Banca on 9 January 2022 and communicated to the market on the same date.

In particular, the following was confirmed: the consideration of €1 for the acquisition of the entire shareholding owned by the Selling Shareholders; payment of a capital contribution of EUR530 million to CARIGE by FITD at the closing of the Transaction.

Closing, which is subject to obtaining the necessary regulatory and statutory authorizations, is expected to take place by 30 June 2022, so as to enable BPER Banca to benefit from the conversion of Deferred Tax Assets (DTA) on CARIGE's tax losses into tax credits.

As was previously communicated to the market, BPER Banca will launch a mandatory public purchase offer, after Closing, on the remaining shares of CARIGE at a price of EUR0.80 per share.

Deal History:
Planned: On December 14, 2021, BPER Banca made a non-binding offer to acquire 88.3% in Banca Carige for consideration of €1.

The Bank of Nova Scotia to Acquire 16.8% Stake in Scotiabank Chile - 28 February ($1.023bn)

The Bank of Nova Scotia, a Canada-based multinational banking and financial services company, has announced that it has reached an agreement to acquire Grupo Said's remaining 16.8% stake in Scotiabank Chile, a Chile-based banking and financial services company.

With the transaction The Bank of Nova Scotia increasing its ownership in Scotiabank Chile to 99.8%. The transaction is subject to customary closing conditions and regulatory approvals.

The transaction is valued at approximately C$1.3bn($1.023bn).

On closing the Bank will pay C$650m and issue 7 million shares to Grupo Said impacting Scotiabank's Common Equity Tier 1 capital ratio by approximately 10 basis points.

The transaction will add approximately C$35m per quarter to the Bank's earnings and be immediately accretive to earnings per share.

Mergers

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 $1.6 bn - 21 March

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 ($1.6bn). 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.

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.

First Abu Dhabi Bank Denies to Merge with Abu Dhabi Islamic Bank (Abu Dhabi Commercial Bank) - 09 March

According to Reports, First Abu Dhabi Bank, a provider of personal banking services including bank accounts, savings, credit cards, mortagegs and loans, has denied talks to merge with Abu Dhabi Islamic Bank (Abu Dhabi Commercial Bank), an Islamic bank. Both companies are based in UAE.

Deal History:
Rumor: On April 3, 2019, First Abu Dhabi Bank may merge with Abu Dhabi Islamic Bank to create biggest lender in Middle East.

Venture financing

NTex Transportation Services (ElasticRun) Secures USD300 Million in Series E Funding - 07 February ($300m)

NTex Transportation Services Pvt Ltd (ElasticRun), an India-based B2B eCommerce platform connecting brands to rural parts of the nation, has secured more that USD300 million in series E funding led by SoftBank Vision Fund 2 with participation from Goldman Sachs, Prosus Ventures, Innoven Capital, Chimera Investment and Gablehorn Investments.

The funding round values the company at USD1.5 billion.

History:

Rumor: On January 05, 2021, techcrunch reported NTex Transportation Services Pvt Ltd (ElasticRun), may secure USD200 million in Series E funding from SoftBank Vision Fund 2 and Goldman Sachs.

Neon Payments (Neon Pagamentos) Secures USD300 Million in Series D Funding - 14 February ($300m)

Neon Payments SA (Neon Pagamentos SA), a Brazil-based digital bank that offers credit cards, personal loans, and investment products, has secured BRL1.6 billion (USD300 million) in Series D funding led by BBVA.

With this investment, BBVA acquires additional 21.7% stake in Neon Payments.

Neon Payments brings the total funding to BRL3.7 billion.

Deal History:
Announced: On February 14, 2022, Neon Payments (Neon Pagamentos), has announced to secure USD300 million in Series D funding led by BBVA.

Britishvolt to Raise USD270.59 Million in Series C Venture Funding - 15 February ($271m)

Britishvolt Ltd, a UK-based electric vehicle battery startup, has to raise GBP200 million in a Series C funding round from Bank of America, Citibank, Peel Hunt, and Glencore.

Under the deal, Glencore invested GBP40 million in Britishvolt.

Lazard acting as financial advisor to Britishvolt in the transaction.

Roofstock Secures USD240 Million in Series E Venture Funding - 10 March ($240m)

Roofstock Inc, a US-based online marketplace for buying and selling single-family rental (SFR) homes, has secured USD240 million in Series E venture funding led by SoftBank Vision Fund 2.

In addition, Khosla Ventures, Lightspeed Venture Partners, Bain Capital Ventures, Canvas Ventures, Citi Ventures, First American Financial, Expanding Capital, 7GC & Co., JLL Spark, SVB Capital, The Private Shares Fund, Masco Ventures, Newton Investment Management North America, Pegasus Tech Ventures, CAZ Investments, Moving Capital and DoorDash Angels also participated in funding.

The Series E financing round, brings the company's valuation to USD1.94 billion.

Gary Beasley is the co-founder and chief executive officer (CEO) of Roofstock.

Raintank (Grafana Labs) Secures USD240 Million in Series D Funding - 07 April ($240m)

Raintank Inc.,(Grafana Labs), a US-based provider of open and composable operational dashboards, has secured USD240 million in Series D funding led by GIC.

In addition, J.P. Morgan, Sequoia Capital, Coatue, Lightspeed Venture Partners and Lead Edge Capital also participated in the funding round.

Cooley acted as a legal advisor to Raintank (Grafana Labs).

Private equity

CK Asset Holdings May Sell Stake in UK Power Networks - 03 March ($20,005m)

CK Asset Holdings Ltd (CK Asset), a Hong Kong-based company involved in the property development and property investment businesses, intends to sell stake in UK Power Networks, a distribution network operator for electricity, for an approximate purchase consideration of GBP15,000 million, according to sources citing people familiar with the matter.

A consortium led by Macquarie Group Ltd. And KKR & Co. Is in advanced talks to buy UK Power Networks. The bidder group also includes APG, China Investment Corp., Ontario Teachers' Pension Plan Board and PSP Investments, according to the people.

UK Power Networks is jointly owned by CK Infrastructure Holdings Ltd. And fellow group companies Power Assets Holdings Ltd. And CK Asset Holdings Ltd.

Advent International May Invest USD1 Billion in Yes Bank - 04 February ($1,000m)

According to Economic Times, Advent International Corp, a US-based private equity firm, may invest USD1 billion in Yes Bank Ltd, an India-based provider of retail and corporate banking and other financial solutions.

Abu Dhabi Developmental Holding Acquires Stake in Commercial International Bank - 13 April ($911m)

Abu Dhabi Developmental Holding Company PJSC (ADQ), an UAE-based investment company, has acquired a stake in Commercial International Bank Egypt SAE, an Egypt-based bank offering financial products and services, for USD911.457 million.

The execution of the deal through the block trading mechanism on 340.096 million shares with a value of USD911.457 million.

The Carlyle Group Plans to Invest USD600 Million in Yes Bank - 03 March ($600m)

The Carlyle Group Inc., a US-based private equity firm, has planned to invest minimum of USD500 million and maximum of USD600 million in Yes Bank Ltd, an India-based provider of retail and corporate banking and other financial solutions.

The lender is in talks with the private equity (PE) investors to raise INR7,500 - INR11,250 crores (USD1-1.5 billion).

Consortium of Investors Invests USD101.53 Million in Atom Bank - 16 February ($102m)

Consortium of investors that includes BBVA, Toscafund and Infinity Investment Partners, have invested GBP75 million (USD101.53 million) in Atom Bank plc, a UK-based financial service provider that offers digital and online banking services.

Mark Mullen is the chief executive officer at Atom.

BBVA is a provider of retail and commercial banking, and wealth management products and services to individual, corporate, SME, and high net worth individual clients, Toscafund Asset Management LLP is an asset fund management firm while Infinity Investment Partners Limited is an independent investment firm that creates partnerships with highly sophisticated investors.

The current investment values Atom Bank at GBP435 million (USD590.9 million).

Asset transactions

Credit Agricole and AXA May Acquire Stake in Hornsea 2 Wind Farm in England, UK from Orsted - 15 February ($2,440m)

Credit Agricole SA and AXA SA, intends to acquire stake in Hornsea 2 wind farm located in England, UK from Orsted AS, a renewable energy company, according to sources citing people familiar with the matter. The total installed capacity of the plant is 1300 MW.

Hornsea 2 wind farm will be capable of powering more than 1.3 million homes and began to produce some power in December, 2021.

Reportedly, The French firms are in advanced discussions to acquire a stake in Hornsea 2, though the auction hasn't been finalized. The transaction value could be worth about GBP1.8 billion (USD2.44 billion) for a 50% share.

Axis Bank to Acquire Consumer Businesses from Citigroup and Citicorp Finance - 30 March ($1.62bn)

Axis Bank Ltd, an Indian provider of commercial and personal banking and other related financial solutions, has agreed to acquire consumer businesses covering loans, credit cards, wealth management and retail banking operations in India, from Citibank NA India and Citicorp Finance (India) Limited for a purchase consideration of approximately INR123.25 billion (USD1628.13 million).

The transaction comprises the sale of the consumer businesses of Citibank India, which includes credit cards, retail banking, wealth management and consumer loans. The deal also includes the sale of the consumer business of Citi's non-banking financial company, Citicorp Finance (India) Limited, comprising the asset-backed financing business, which includes commercial vehicle and construction equipment loans, as well as the personal loans portfolio.

The acquisition is subject to customary closing conditions, including receipt of regulatory approvals and Closing is expected to be achieved in fourth quarter of 2023.

Axis Capital and Credit Suisse acted as Financial Advisors to Axis Bank for the transaction, and Khaitan & Co acted as Legal Advisor. In addition, the Bank was supported by PricewaterhouseCoopers and Boston Consulting Group.

Deal History:
Rumor: On February 14, 2022 According to people familiar with matter, Axis Bank Ltd, an India-based provider of commercial and personal banking and other related financial solutions, may acquire retail banking business in India from Citigroup Inc., a US-based financial services company, for a consideration of $2.5bn

An agreement for the consumer unit may be announced as soon as the next few weeks and is contingent on approval from the Reserve Bank of India.

The deal would include a cash component of less than USD2 billion, accounting for the consumer business liabilities.

TransUnion Acquires Verisk Financial Services from Verisk Analytics - 22 February ($515m)

TransUnion LLC, a consumer credit reporting agency, has acquired Verisk Financial Services, its financial services business unit, from Verisk Analytics Inc, a provider of statistical, actuarial and underwriting data for property and casualty insurance industry, for consideration of USD515 million. Both the companies involved in the transaction are based in the US.

Verisk Financial maintains the financial institution consortia to provide proprietary competitive portfolio performance insights, benchmarking, decision algorithms and business intelligence.

Goldman Sachs & Co LLC and Davis Polk & Wardwell LLP are acting as financial and legal advisors to Verisk, respectively.

PJT Partners acted as lead financial advisor to TransUnion and Simpson Thacher & Bartlett LLP served as legal advisor to TransUnion.

Deal History:
Announced: On February 22, 2022, TransUnion entered into a definitive agreement to acquire Verisk Financial from Verisk Analytics for consideration of USD515 million.

Banco de Sabadell May Sell its Payments Business - 11 February ($397m)

According to gulftime and pymnts sources, Banco de Sabadell SA, a Spain-based provider of banking products and related financial solutions, may sell its payments business.

The consideration may be between EUR250 million and EUR350 million (USD283 million -USD397 million).

The payments business handles the processing of transactions made with credit and debit cards.

Nexi in Talks to Acquire Payments Unit from BPER Banca - 21 February ($396m)

Nexi SpA, a payment system's bank, is in advanced talks to acquire the Italian payment unit from BPER Banca SpA, a banking group offering traditional banking services to individuals, corporate and public entities for EUR350 million (USD396.19 million). Both the entities are based in Italy.

The company began exclusive discussions with BPER Banca earlier this month to buy its merchant acquiring business, which specializes in the management of electronic payments, said the people, asking not to be named discussing confidential information.

People familiar with this matter said a deal is expected to be signed by the end of March.

Paolo Bertoluzzo is the Chief Executive Officer of Nexi SpA.

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