In any given market, the evolution in the number and size of mergers and acquisitions (M&A) is a strong signal of economic maturity. The more a sector matures, the more it tends to concentrate around a few large players—a dynamic particularly evident in the banking and financial sector. Analysis and insights from the experts at AURIS Finance, a consulting firm specializing in M&A transactions.
Growing to Face Competition: A Practice that Makes Economic Sense, Especially in Banking
Consolidation addresses several challenges:
- M&A primarily responds to the heavy investments needed to remain competitive. In a context of accelerated digitalization, banks must fund large-scale projects in cybersecurity, data management, and omnichannel customer experience—areas that require significant financial resources.
- Merging banking players allows for the amortization of fixed costs (compliance, risk management, IT, human resources) and realization of economies of scale.
- In regulated sectors such as banking and insurance, achieving a sufficient scale is not just a strategic advantage but also a regulatory requirement: certain solvency ratios demand significant resources, difficult to mobilize for smaller players.
Concentration: a Sign of Maturity
The more a market consolidates, the more it reaches maturity. This is the case, for example, in the Moroccan banking sector, which is currently undergoing concentration. In recent years, many moves have taken place.
By the end of 2025, Holmarcom, already a major shareholder of Crédit du Maroc, entered negotiations to acquire BNP Paribas’ majority stake in BMCI, with a view to merging the two banks. Analysts estimate that a Crédit du Maroc–BMCI merger would place the combined entity among the top five Moroccan banks, with an expanded customer base and significant cost and revenue synergies.
At the Pan-African level, Sanlam and Allianz signed a joint venture agreement to combine a large part of their insurance activities in Africa under a single structure covering multiple countries. The stated objective is to increase insurance penetration, accelerate product innovation, and strengthen financial inclusion in high-growth markets.
A Western Market Already Consolidated
In Europe, banking consolidation is a long-standing and advanced process. In France, the market is dominated by a small number of large universal banks operating both domestically and internationally. Over the decades, these players have grown through successive acquisitions, network rationalization, and divestment of non-strategic activities. Société Générale exemplifies this portfolio adjustment strategy, having signed agreements in 2023 to sell its subsidiaries in Burkina Faso and Mozambique to the Vista group as part of a strategic review of its African operations.
North African Catch-Up
Banking consolidation is now accelerating across Africa, particularly visible in North Africa. Morocco is a pioneer: its banking sector is considered one of the most structured on the continent, with strong institutions and a robust prudential framework. The creation of AtlantaSanad Assurances illustrates current developments in North Africa. In 2020, Holmarcom merged its two subsidiaries, Atlanta and Sanad, creating one of Morocco’s leading non-life insurance companies.
A Strict Prudential Framework
Bank M&A transactions operate within a particularly strict and internationally standardized regulatory framework. They require careful analysis of impacts on solvency ratios, liquidity, risk management, and governance.
In practice, these operations involve:
- Detailed financial analysis, including stress scenarios, projections of prudential ratios, and expected synergies.
- Specific due diligences covering regulatory, credit, market, operational, and ESG risks.
- Detailed planning of post-transaction governance, in close dialogue with regulators.
Our Experts by Your Side
Banking mergers require the support of professionals capable of analyzing all aspects of a transaction within a regulatory framework. AURIS Finance experts support clients throughout their growth transactions, from strategic analysis to execution.
