A transformative banking merger, a specialty insurance megadeal, and several asset management transactions put the financial services sector at the top of EMEA deal rankings in Q1 2026.

Financial services deal value reached €82.1 billion in the quarter, up by more than 80% and almost €10 billion ahead of TMT, the second-largest sector by deal value, according to Deal Drivers: EMEA Q1 2026.

Building scale and tweaking portfolios to maximize profitability are key priorities for financial services companies, which are expected to continue pursuing M&A to achieve strategic objectives.

Banking blockbuster

Italian-based bank UniCredit’s €25.7 billion bid for German peer Commerzbank is the standout deal in the sector so far this year.

European policymakers have flagged banking consolidation as essential for enhancing the long-term global competitiveness of Europe’s financial sector and improving banking profitability.

The combination of UniCredit’s and Commerzbank would create a €1.1 trillion pan-European banking powerhouse with a deep retail and corporate banking footprint.

The German government, which holds a stake in Commerzbank, has pushed back against the deal, wanting the lender to remain independent and highlighting the political sensitivity and regulatory complexity of banking M&A. UniCredit is undeterred and has recently launched a tender offer to increase its stake in its German peer.

A wealth of deals in asset management

Banking deal activity has sparked M&A in other financial services sub-sectors too, most prominently in the wealth and asset management space.

In February, UK bank Natwest announced a £2.7 billion deal to acquire wealth manager Evelyn Partners from private equity firms Permira and Warburg Pincus.

Following the global financial crisis in 2008, banks divested wealth advisory businesses as regulatory changes imposed higher qualification standards on wealth professionals and restricted the scope for banks to amass high fees from distributing their own products.

Banks, however, are now returning to the wealth management to diversify income streams and build exposure to a growing market. The sector is expected to benefit from rising wealth transfers in an ageing population, growing wealth in the millennial and Gen X demographics, and rising demand for wealth advice from consumers.

Buyout firms are well positioned to service this demand for wealth management deals. Private equity managers have consolidated smaller operators facing digital disruption into large platforms with modern tech-stacks that are a good fit for banks. Consultancy Oliver Wyman says buyout shops could sell wealth management assets with a combined value of around $25 billion during the next three years.

Fund managers are actively pursuing M&A too, investing in deals that expand geographic reach and assets under management (AUM) and broaden product offerings.

US asset manager Nuveen, for example, acquired UK counterpart Schroders in an €11.27 billion deal that will form one of the largest asset managers in the world with a global distribution network and AUM of $2.5 trillion.

Global insurers seek specialty players

Deepening product expertise is driving M&A in the insurance sector, too.

Global insurance giant Zurich, for example, acquired Lloyd’s of London insurer Beazley for €9.37 billion at the start of the year. Beazley specializes in providing cover for cyberattacks and provides Zurich with a pathway into a lucrative insurance niche.  

Large insurers remain eager to expand into other niche insurance verticals with high margins, including energy, construction, and shipping, and are willing to run hard at deals with secure these assets. Beazley, for example, pushed back a number of bids from Zurich before trading at a 60% premium to its pre-deal valuation.

Shareholders in specialist insurers will note the premium valuations these companies are commanding, and with demand for niche risk expertise showing no signs of cooling, insurance M&A is likely to remain a dealmaking hotspot through the rest of 2026.

Other European banks have also pushed forward with deals, despite potential execution complexities. At the end of 2025 Dutch bank ABN AMRO announced a €960 million takeover of NIBC Bank from Blackstone, and in February Italian banks ‌Monte dei Paschi di Siena and Mediobanca approved the next steps towards a full merger.

Further banking M&A deals are anticipated as banks turn to deals to expand their platforms in response to intensifying regulatory and digital investment demands.