Cross-border mergers and acquisitions among European Union banks surged last year to levels unseen since the 2008 financial crisis, signalling a renewed appetite for consolidation in a long-fragmented sector. According to data from Dealogic, the total value of these deals jumped to €17 billion in 2025, up sharply from €3.4 billion in 2024. This resurgence is largely attributed to stronger earnings and buoyant stock performance, which have made international mergers increasingly attractive.
| Year | Total Value of EU Cross-Border Bank Deals (€bn) | Notable Drivers |
|---|---|---|
| 2024 | 3.4 | Low profitability, regulatory caution |
| 2025 | 17 | Rising profits, shareholder pressure, fintech competition |
For years, policymakers have urged consolidation across the EU’s banking landscape, which remains highly fragmented compared with the United States. Executives have frequently cited regulatory complexity and political resistance as key obstacles, limiting cross-border expansion and allowing US banks to dominate global markets.
Despite slow progress in harmonising rules for pan-European banking, several high-profile mergers suggest that European banks are increasingly willing to navigate these hurdles. Multibillion-euro deals contributed substantially to last year’s surge, demonstrating a shift from the cautious dealmaking that dominated the sector for much of the previous decade.
Andrea Orcel, chief executive of UniCredit, who has long advocated for larger and more competitive European banks, warned that the sector is entering a transformative period. “The competitive landscape is going to change dramatically,” he said last week, highlighting the dual impact of technological innovation and the rise of fintech companies.
Orcel predicted a marked reduction in the number of European banks by 2030, with a widening gap between successful and struggling institutions. “There will be winners and losers, and the dispersion between them will be much, much greater. Some will consolidate. Some will be wiped out,” he said.
Analysts suggest that the combination of stronger balance sheets, pressure from shareholders, and the need to invest in digital infrastructure is likely to maintain momentum in cross-border banking deals. As European banks continue to pursue growth beyond national boundaries, observers anticipate an acceleration in mergers and acquisitions over the coming years, reshaping the continent’s banking sector in profound ways.