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Italy’s UniCredit hopes to merge with France’s Societe Generale

  • Ben Norman
  • June 6, 2018
  • 0

Will there be a new super-bank in town?

The Financial Times reported on Tuesday that two of Europe’s largest commercial banks could potentially merge soon. Italy’s UniCredit hopes to acquire Societe Generale in one of the biggest bank acquisitions of all time.

However, a deal is far from definitive. UniCredit did not comment on the Financial Times report, and Societe Generale actually denied any discussion of a merger with the Italian bank.

But if the companies do merge, their combined assets would value roughly $2.5 trillion, based on their 2017 reports. This figure would put them in the same ballpark as HSBC, Europe’s largest bank, which lent $2.522 trillion in assets last year.

Additionally, these banks aren’t the only ones considering major acquisitions. The Financial Times also reported that Barclays is seeking an acquisition of Standard Chartered Bank. Mainly, this would curb any unruly demands from now major shareholder Edward Bramson, who has a history of pressuring banks into unideal situations. Plus, the merger would spread Barclays’ reach from the UK and US to Asia, Africa, and the Middle East.

Rumors have also been circulating that German Deutsche Bank will merge with its rival, Commerzbank. This acquisition would create a super-bank of the two major banks in Germany.

Europe’s banks are seeking major acquisitions. Although the validity of these rumors is uncertain, they are certainly possible. These banks show that major mergers and acquisitions are becoming more popular not only domestically, but worldwide as well.

 

Featured image via Flickr/Ale Desiderio

 

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: Hi, I'm Ben! Aside from BIZNOB, I have a passion for sports, music, reading, and photography. I love sharing my thoughts with the world, and I hope you enjoy what I have to say!