Latest news with #MergersAndAcquisitions
Yahoo
a day ago
- Business
- Yahoo
2 Large Regional Bank Stocks That Could Get Acquired During the Trump Administration
Mergers and acquisitions (M&A) could pick up in the banking sector under the Trump administration, which plans to deregulate the sector. Large regional banks could experience consolidation. The large regional players need to scale if they want to compete with the likes of JPMorgan Chase and Bank of America. 10 stocks we like better than Comerica › The banking industry is ripe for consolidation. Although there were more than 4,500 banks in the U.S., as of last year, four, in particular, collectively control trillions in assets: JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup. While smaller banks will keep gobbling each other up and merging to obtain scale, this could also take place in the large regional banking market, among banks with $75 billion to $700 billion in assets. Regulators under President Donald Trump's administration have given the sector the green light for mergers and acquisitions, a stance that wasn't embraced under former President Joe Biden's administration. If the large regional banks truly want to compete against the big four, they're going to have to get bigger. Acquisition candidates typically can command a nice premium for shareholders. Here are two banks that could get acquired during the next four years. At the end of the first quarter of 2025, Comerica (NYSE: CMA) had about $78 billion in assets and operates in attractive U.S. banking markets like Texas and states in the fast-growing Southeast of the U.S. This is an awkward size for a regional bank these days, because it is too big to be a local bank, but not nearly big enough to compete with the bigger players. Furthermore, $100 billion has previously been a battleground for banking regulators under various administrations when thinking about the size threshold they consider too big to fail -- meaning they're so crucial to the financial system that regulators will bail them out if they are at risk of failing. As such, investors frequently have to reassess regulations and capital requirements for banks around this size. Last year, Comerica announced it will not be extending a banking relationship with the U.S. Treasury Department that provided it with $3 billion in noninterest-bearing deposits, which is essentially a free funding source, although the agreement will continue for the next few years before the transition, which could partly explain its low valuation relative to peers. When looking at acquisitions, it's important to look at a bank's price-to-tangible book value (TBV), which shows its price relative to its tangible equity, or what the bank might be worth if it were liquidated. The higher a bank's price-to-TBV, the more likely it is to be a buyer because its stock currency is more valuable, so it could buy banks with smaller price-to-TBVs and see less dilution in an all-stock or part-stock deal. Here is the price-to-TBV of several major U.S. regional banks. Now, just because Comerica sits at the bottom of the group doesn't mean it will automatically be acquired. However, it makes an acquisition more palatable for a buyer. At the end of the day, banks are sold and not bought, meaning Comerica is going to have to raise its hand if it wants to sell. Interestingly, though, Chief Executive Officer Curtis Farmer is 62 and has a change-in-control (CIC) agreement with the bank that would earn him a payout of more than $35 million in the event that the bank changes hands, among other potential benefits that could be lucrative. KeyCorp (NYSE: KEY) is another bank that could be gone by the time the Trump administration ends. As you can see in the chart, the bank also falls lower in the pack in terms of price-to-TBV. However, KeyCorp could be attractive, due to its strong capital light, fee-based businesses, including investment banking and trust. Any bank that wants to compete with the big four needs to bulk up in investment banking, and acquiring KeyCorp would be a step in that direction. Additionally, KeyCorp last year sold a 14.9% stake to the Canadian-based lender Scotiabank for $2.8 billion in order to obtain more capital flexibility. This helped it restructure its bond portfolio, which fell underwater amid the higher-interest rate environment during the past few years. The agreement with Scotiabank only allows it to increase its stake in KeyCorp to 19.9% for the next five years, although some analysts have speculated on whether a full acquisition could be in Scotiabank's future. Still, I don't believe this prevents another bank from buying KeyCorp if the bank were to be interested in selling. KeyCorp's CEO Chris Gorman is 64 and also stands to make a lot of money if the bank is acquired, with a CIC agreement that would pay out close to $35.7 million. Before you buy stock in Comerica, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Comerica wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America, JPMorgan Chase, PNC Financial Services, and U.S. Bancorp. The Motley Fool recommends Bank Of Nova Scotia and Regions Financial. The Motley Fool has a disclosure policy. 2 Large Regional Bank Stocks That Could Get Acquired During the Trump Administration was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
2 days ago
- Business
- Bloomberg
Ascension Health Nears $3.9 Billion Deal for Amsurg Outpatient Centers
Amsurg, the ambulatory surgery company once part of Envision Healthcare, is in advanced talks to sell itself to Ascension Health for about $3.9 billion, according to people with knowledge of the matter. A deal with Ascension could be struck within weeks, said the people, who asked not to be identified discussing confidential information.
TechCrunch
2 days ago
- Business
- TechCrunch
Grocery platform Misfits Market acquires The Rounds to further its mission of reducing food waste
Misfits Market, the online platform that delivers imperfect groceries to help minimize waste, announced the acquisition of household restocking service The Rounds on Friday. As a result of the deal, Misfits Market plans to take on over 250 items from The Rounds' inventory. This allows the company to diversify into additional categories, such as household items, including cleaning supplies and paper products. In a bid to transition The Rounds customers to Misfits Market, the company is offering a $30 credit, along with a complimentary one-year subscription to its new Misfits+ membership, which includes exclusive weekly deals and free shipping. The company declined to disclose the terms of the deal. It also couldn't confirm whether layoffs would be part of the acquisition, as decisions are still being finalized. The Rounds has raised a total of $66 million from investors such as Andrew Chen (Andreessen Horowitz), Annie Kadavy (Redpoint Ventures), Construct Capital, and First Round Capital. Along with diversifying its offerings, the deal will allow Misfits Market to collaborate with former partners from The Rounds, including major multifamily operators such as AvalonBay, Greystar, and Related. Misfits Market also aims to gain a stronger foothold in the industry as a result of the deal. Notably, the company will continue to pursue M&A as part of a broader growth strategy, especially at a time when consumer awareness of food waste and sustainability is on the rise. 'This market is ripe for consolidation, and we are constantly looking at deals,' Misfits Market CEO Abhi Ramesh told TechCrunch. Techcrunch event Save now through June 4 for TechCrunch Sessions: AI Save $300 on your ticket to TC Sessions: AI—and get 50% off a second. Hear from leaders at OpenAI, Anthropic, Khosla Ventures, and more during a full day of expert insights, hands-on workshops, and high-impact networking. These low-rate deals disappear when the doors open on June 5. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | REGISTER NOW This marks Misfits Market's second acquisition, following its purchase of Imperfect Foods in 2022, another competitor in the market. Misfits Market, founded in 2018, offers produce that has been rejected by farmers and suppliers for being considered too 'ugly' to sell in grocery stores, often due to being too small, oddly shaped, or having discoloration. The Rounds, meanwhile, has offered its sustainable grocery delivery service since 2019 that refills home essentials using reusable packaging. To date, Misfits Market has rescued more than 238 million pounds of food, according to the company. The Rounds has saved over 1 million pounds of packaging waste and estimates to save an average of 500,000 pounds of food each week.
Bloomberg
2 days ago
- Business
- Bloomberg
Perella Weinberg Hires Veteran Greenhill Dealmaker David Wyles
Perella Weinberg Partners is hiring veteran Greenhill & Co. dealmaker David Wyles as it seeks to beef up its European team. Wyles is set to join Perella as a London-based partner after a period of gardening leave, a spokesperson for the bank confirmed in response to Bloomberg News queries. He previously helped run Greenhill's business in Europe, the Middle East and Africa.
Yahoo
3 days ago
- Business
- Yahoo
JPMorgan hires former HSBC dealmaker Kamal Jabre to drive EMEA growth
(Reuters) - JPMorgan has named HSBC's former global head of mergers and acquisitions, Kamal Jabre, as its new M&A Vice Chair to drive expansion across Europe, the Middle East and Africa (EMEA), according to a memo seen by Reuters on Thursday. Alongside Jabre, the bank also named insider Marc Pandraud, who joined JPMorgan from Deutsche Bank in 2016, as M&A Vice Chair. The two will collaborate closely with JPMorgan's local industry, country and M&A teams to expand its franchise in EMEA, the memo added. A spokesperson from HSBC confirmed Jabre's departure in an emailed statement to Reuters. Jabre moved to HSBC from Morgan Stanley in 2018. HSBC in January laid out plans to wind down its M&A and some equities businesses in Europe and the Americas, as part of a strategy to scale back its global footprint and shift focus to Asia and the Middle East. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
