Market and policy climate
Market Climate
How would you describe the current market climate for
M&A activity in the financial services sector in your
jurisdiction?
According to the international media agency Thomson Reuters,
financial services are among the three sectors, along with TMT and
automotive, where public M&A activity has picked up at the
fastest pace in Luxembourg since the 2020 covid-19 pandemic.
Overall, the average size of Luxembourg deals has remained
stable rather than grown considerably, which has had a certain
impact on their features and structuring. Common characteristics of
the transactions we come across are the involvement of foreign
entities, a clearly above-average deal size and a constant
subscription to warranty and indemnity insurance. The Luxembourg
M&A market has further seen in the past year a significant
increase in transactions in the financial services sector, leading
to some concentration in the trust companies' industry.
