In an interview with S&P Global, White & Case partner Hyder Jumabhoy commented on the M&A spree of Europe's top stock market operators.
Although the health crisis caused a slump in global M&A activity in the first half of 2020, it has not affected the deal-making appetite in the European financial market infrastructure space. M&A as a means to achieve scale remains attractive to the sector despite the pandemic, law firm White & Case said in its first-half M&A trends report released July 13.
Europe's top players are caught in a "follow-the-leader game" where "participants can hardly afford to be left behind while their direct competitors surge forward," Jumabhoy said in an interview.
Banks are viewed as a source of potential M&A in the future. As COVID-19 prompts banks to revisit their core versus noncore operating business and asset allocations, many may look to off-load their minority stakes in stock exchanges and central securities depositories, as these liquid assets are an easy sell, Jumabhoy said.
To read the article in full, go through to S&P Global.