Mergers and Acquisitions in the European Banking Sector: The Case of BNP and Paribas

Summary

The financial sector is undergoing rapid restructuring through mergers and acquisitions operations at the global level. The European banks are following the global trend. The paper analyses the takeover battle between three French banks; the BNP, Société Générale and Paribas. The purpose of the analysis is to understand the logic behind this operation within the context of the financial theory. The paper includes the profiles of the three banks involved in the operations and the chronology of the events leading to the final outcome and critically analyses the proposed synergies. The importance of the method of payment and its impact on the operation is also discussed. The conclusions are drawn on the real motivations behind these operations.