Banking On U.S. Acquisitions: European financial institutions, their growth stymied at home, are targeting U.S. retail acquisitions

CFO: Magazine for Senior Financial Executives,  Feb, 2003  by Ian Rowley

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In addition, if consolidation were to pick up in Europe, banks there could lose interest in U.S. acquisitions. BNP Paribas appears to have struck out in last year's bid for French rival Credit Lyonnais, but it is frequently linked with Societe Generale. And BancWest's Grigsby admits that his parent firm's spending plans could be curtailed if a large-scale French consolidation had to be funded.

The prospect hasn't stopped him from scouting potential U.S. targets, though. "Our history has shown us to be quite opportunistic," says Grigsby, and the very growth of BancWest so far has allowed him to think about more and larger targets.

FROM ACROSS THE POND

Large financial-services acquisitions by European companies


Acquirer (Country)      Target Company      Target's Business

HSBC Holdings (UK)      Household Int'l     Consumer financial svcs.
Royal Bank of Scotland  Medford Bancorp     Bank holding co.
Deutsche Bank           RREEF               Real estate invest. advisor
BNP Paribas (France)    United Calif. Bank  Commercial banking
Credit Suisse           Arch Capital (1)    M&A investing
Deutsche Bank           Zurich Scudder      Investment mgmnt.
Swiss Re                Lincoln Re          Reinsurance
BNP Paribas             BancWest            Bank holding co.

                          Value
Acquirer (Country)      ($ mill.)    Date *

HSBC Holdings (UK)       15,467       11/02
Royal Bank of Scotland      279        6/02
Deutsche Bank               490        3/02
BNP Paribas (France)      2,400       12/01
Credit Suisse               500       10/01
Deutsche Bank             2,500        9/01
Swiss Re                  2,000        7/01
BNP Paribas               2,399 (2)    5/01

* Announced.

(1)Investment in operations.

(2)Increase in stake from 45% to 100%.

SOURCE: DEALOGIC

IAN ROWLEY IS A STAFF WRITER AT CFO EUROPE.

COPYRIGHT 2003 CFO Publishing Corp.
COPYRIGHT 2008 Gale, Cengage Learning