2007 was top year for financial takeovers

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The number of takeovers in the financial sector rose by 61 percent to 281 deals in 2007.

17 March 2008

AMSTERDAM – The number of takeovers in the financial sector rose by 61 percent to 281 deals in 2007.

The number of takeovers with a value of more than EUR 1 billion rose from 18 to 31, according to a study published on Monday by service provider Pricewaterhouse Coopers.

The number of small to medium-sized takeovers (less than EUR 0.5 billion) rose by 64 percent.

Almost a fifth of all takeovers in Europe in 2007 were in the financial sector. A total of EUR 207.7 billion was spent on acquisitions in the financial sector last year.

The takeover by Dutch bank ABN AMRO by Fortis, Banco Santander and the Royal Bank of Scotland accounted for a third of this amount. It was by far the largest takeover in Europe.

The unrest on the financial markets does not seem to have affected acquisition capacity, according to the study. Three in ten financial service providers polled expect that the drive for large acquisitions will increase this year.

Private equity parties are expected to undertake fewer takeovers in the coming years. Almost nine in ten of those surveyed expect a decrease in the availability of borrowed capital for the financing of takeovers.

[Copyright Expatica News + ANP 2008]

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