Discussion Paper Details

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Title: Value creating mergers ?? British bank consolidation, 1885-1925

Author(s): Fabio Braggion, Narly Dwarkasing and Lyndon Moore

Publication Date: April 2020

Keyword(s): Banking, Great Britain and mergers and acquisitions

Programme Area(s): Economic History

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.

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Bibliographic Reference

Braggion, F, Dwarkasing, N and Moore, L. 2020. 'Value creating mergers ?? British bank consolidation, 1885-1925'. London, Centre for Economic Policy Research.