European banks are losing out to U.S. competitors
(1 September 2015 - Europe) Over the last year, U.S. based banks have generated the highest proportion of European mergers and acquisition (M&A) fees since 1998 according to Dealogic. In total, U.S. banks have captured 51.2% of revenue from European M&A over this period.
The biggest winners have been Goldman Sachs Group Inc. and J.P. Morgan Chase & Co., accounting for 10.8% and 8.7% of total fees, respectively. Rothschild is the highest-ranked European bank at third with 7.4% of M&A revenue.
Europe M&A activity is up modestly compared to the U.S. European M&A volume stands at US$679.2 billion (A$954.3 billion) year-to-date, an increase of 15% from last year’s activity at this time. Intra-European M&A volume, where both the target and acquirer is European, is down 13% this year, with US$410.9 billion in announced dealsYet M&A volume between U.S. and European companies is up and has hit US$256 billion, the highest year-to-date since 1999.
The increase in market share for U.S. banks comes as overall European M&A revenue has dipped. Fees that banks have generated from European deals stands at US$3.6 billion in 2015, down 6% from the same time period in 2014.
Goldman Sachs Group Inc., replicates its dominant global and U.S. position in Europe. While M&A fees in Europe have fallen from last year, the advisory group had the largest gain in wallet share of European M&A with their share increasing by 2.4% in 2015 from the previous year.
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