Below, I numerate the possible Game of Throne’s merge and acquisition scenarios within the banking sector. It becomes more interesting as we witnessed these financial institutions get bigger and stronger. The battle has just begun!
1. BDO protects its throne.
2. BPI challenges the throne.
BPI is a potential hunter which has to be watched. Note that Gil Buenaventura, RCBC’s current President, previously served as a senior officer in BPI. This establishes a connection between BPI and RCBC, which may pave the way for a possible merge and acquisition between the two banks. An acquisition by BPI will allow it to challenge BDO’s ranking and regain its throne.
3. MBT resurfaces as a hunter.
After going through merge and acquisition binge in the late 1990’s to early 2000’s, MBT has been absent from merge and acquisition scene. If the bank resurfaces as an acquirer, an acquisition will allow MBT to reclaim its past position as the country’s biggest bank.
4. Mid-sized banks end-up as acquirers.
If China Bank acquires RCBC, it will pull away from its mid-sized peers and become the 4th biggest bank in the country. Likewise, other mid-sized banks, such as Security Bank and Union Bank, might also end-up as possible hunters. Yet, Union Bank still remains as a potential target. Last week, Bank President Edwin Bautista was quoted as saying that there are some Foreign Banks who inquired about investing in Union Bank.
5. Foreign Banks end-up as hunters.
The banking sector has received growing interest from foreign banks and financial institutions. Last week, BSP Deputy Governor Nestor Espenilla Jr. said that there are eight Foreign Banks which have shown active interest in entering the Philippines.
Some of these banks may end-up acquiring local banks with solid client bases and extensive branch networks.
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