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Value creating mergers – British bank consolidation, 1885-1925

Author

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  • Braggion, Fabio
  • Dwarkasing, Narly
  • Moore, Lyndon

Abstract

The British banking sector had many small banks in the mid-nineteenth century. From around 1885 until the end of World War One there was a process of increasingly larger mergers between banks. By the end of the merger wave the English and Welsh market was highly concentrated, with only five major banks. News of a merger brought a persistent rise in the share prices of both the acquiring and the target bank (roughly 1% and 7%, respectively). Non-merging banks, especially those whose local market concentration rose as a result of the merger, saw their stock prices rise.

Suggested Citation

  • Braggion, Fabio & Dwarkasing, Narly & Moore, Lyndon, 2020. "Value creating mergers – British bank consolidation, 1885-1925," CEPR Discussion Papers 14663, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:14663
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    References listed on IDEAS

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    More about this item

    Keywords

    Great britain; Banking; Mergers and acquisitions;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • N23 - Economic History - - Financial Markets and Institutions - - - Europe: Pre-1913
    • N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-

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