After years of drought, the presentation of requests returns in the American banking sector, and the analyst of Wells Fargo, Mike Mayo, has broken down, companies could be the next target. Mayo, one of the most near the industry, said the configuration reminded him of the 1990s when consolidation swept the regional and community banks following regulatory rescue waves. “I lived and worked during this period,” he said on Monday during CNBC’s “power lunch”. “It starts a little, and other people look at it, but it creates a domino effect. The merger on Monday is back for banks. Look for the next 12 months. We should see many more mergers. And this is the period of the greatest deregulation in three decades.” On Monday, the fifth third Bancorp announced its intention to acquire Comerica as part of a stock agreement worth $ 10.9 billion, marking one of the largest combinations of regional banks in years. Mayo had seen him coming. In fact, he added Comerica to the Wells Fargo control basket, a list of potential mergers and acquisitions compiled by his team six weeks ago. The head of banking research with great American capitalization at Wells Fargo Securities said that Washington signaling a lighter regulatory touch, the environment is increasingly favorable to mergers. “You can dream of the dream in this deregulating environment. It is a more professional, professional and professional regulatory environment, the most we have had for some time,” said Mayo. “I think that today’s merger is proof that Goliath wins in the bank. The scale is more important than ever, and it is for distribution, it is for the brand, it is technology, that is to say the largest bank.” Mayo said Midcap banks as a category are more digestible for mergers. The other names of this buyout basket include Bank of California, Bankunited and First Horizon – All medium -sized banks that could attract larger buyers looking for scale and efficiency.
M&A returns largely in the bank. A high -level analyst thinks that these are the next take -out dishes
Related Posts
